BAKU, Azerbaijan, April 1. The European
Investment Bank (EIB) and Italian energy group Eni have signed a
€500 million, 15-year loan agreement to convert part of the
Sannazzaro de’ Burgondi refinery in northern Italy into a
biorefinery, Trend reports via Eni.
The agreement was signed by EIB Vice-President Gelsomina
Vigliotti and Eni Chief Executive Claudio Descalzi.
The project involves converting the refinery’s Hydrocracker
(HDC2) unit using Ecofining™ technology, and building a
pre-treatment plant for waste materials like used cooking oils and
animal fats, as well as waste from the agri-food industry, which
comprise the main feedstock used by Enilive (Eni’s company devoted
to achieving more sustainable mobility) to produce hydrotreated
vegetable oil (HVO) biofuels.
Production at the upgraded Sannazzaro site is expected to begin
in 2028, with annual output projected at around 550,000 tonnes,
including both HVO diesel and sustainable aviation fuel (SAF).
The companies said the project will build on existing
infrastructure while expanding output of lower-carbon fuels,
contributing to emissions reductions across transport sectors and
supporting aviation decarbonisation, where SAF remains the primary
solution.
The initiative is also expected to bolster energy security in
Italy and the European Union by diversifying fuel supply and
increasing domestic biofuel production capacity, in line with the
bloc’s REPowerEU strategy.
The deal follows a similar €500 million financing agreement
signed in July 2025 for the conversion of Eni’s Livorno refinery.
Together, the projects form part of Enilive’s broader strategy to
raise biofuel production capacity to 5 million tonnes per year by
2030, including more than 2 million tonnes of SAF.
Enilive currently produces biofuels at facilities in Venice and
Gela, as well as at a joint venture refinery in Louisiana, United
States. Additional plants are under development in Italy and
abroad, including in Malaysia and South Korea.
Demand for sustainable aviation fuel is expected to accelerate
from 2030, driven by EU blending mandates under the ReFuelEU
Aviation regulation, reinforcing the long-term viability of such
investments.
According to the International Energy Agency, biofuels accounted
for about 4% of global transport energy consumption in 2024 and are
projected to rise to 9% by 2035 and 12% by 2050 under a net-zero
scenario, highlighting their growing role in the energy
transition.
