Ludoil has launched a €40 million green bond issuance to finance the construction of a new biomethane plant in the industrial area of Dittaino, within the province of Enna in Sicily.

The move marks the company’s entry into sustainable finance markets, aligning its capital structure with the growing demand for green infrastructure funding in Italy’s energy sector.

The project, developed in partnership with Engas, aims to produce biomethane from organic waste, contributing to the decarbonization of the transport and industrial fuel mix.

By issuing a dedicated green bond, Ludoil is targeting institutional investors with ESG mandates, potentially lowering its cost of capital while enhancing its corporate sustainability profile.

This development comes as Italian energy companies increasingly turn to renewable gas projects to meet EU climate targets and diversify away from fossil fuels.

The biomethane sector has gained traction due to favorable regulatory frameworks and rising corporate commitments to reduce carbon footprints.