Italian energy company Eni has signed an agreement with Cassa Depositi e Prestiti Group (CDP) to set up a company named as CircularIT.

The new firm aims to construct plants that will produce biofuels and water from organic municipal waste (FORSU), aligned with a circular development model.

The water produced by the plants will be used for irrigation and industrial reuse.

CDP Equity which is controlled by Cassa Depositi e Prestiti, will own 51%stake of CircularIT, while Eni’s subsidiary Eni Rewind will own 49% stake, subjected to Antitrust authorisation.

Eni and its subsidiary Eni Rewind will use their proprietary technologies for processing FORSU and their industrial expertise in building and managing the plants which produce biofuels.

Furthermore, CDP and CDP Equity will coordinate with the institutions at a central and local level to help the authorization procedures and promote technologies.

Due to the regional interest and national importance on the project, the initiative may also include minority institutional investors and local operators in the sector.

CircularIT aims to help fill the infrastructure investment gap

The new company CircularIT aims to help fill the infrastructure investment gap which is required to achieve the targets that were set as part of the EU Circular Economy 2018.

The EU Circular Economy 2018 outlines the community objectives to recycle urban waste that is 55% by 2025, 60% by 2030 and 65% by 2035, and reduce maximum 10% amount of municipal waste which can be disposed of in landfills by 2035.

In December last year, Eni signed agreements to set up a company named as GreenIT which aims to build plants to produce electricity from renewable sources and will add value to real estate and abandoned public areas.

Eni will own 51% stake of GreenIT, while CDP Equity will own 49%stake.

In April last year, the energy company had signed a non-binding agreement with Cassa depositi e prestiti, Fincantieri and Terna to develop and build wave power stations on an industrial scale.