Italian refiner Saras has announced plans to cut expenses to save €120 million ($141 million) as it struggles with a collapse in energy consumption. About €30 million in savings will come from Italy's temporary furlough scheme. Saras said it would not lay off workers under the cost-cutting program. Saras, which operates a 300,000 bpd refinery in south-western Sardinia, posted a €41 million loss in the first half of 2020. Another portion of the savings will come from reducing production at the refinery, which will run at 70% to 80% of its full capacity.
Saras will also stick with its long-term plans to expand biofuel refining capacity. The company will convert existing crude refining capacity to process vegetable oil, CEO Dario Scaffardi said. In July, Saras said it plans to increase vegetable oil processing capacity to 250,000 tons/year. The company is also considering investments in hydrogen as well as a carbon capture and storage facility.
