EIB and Eni Seal €500 Million Deal to Transform Italian Refinery into Major Biofuel Hub

The European Investment Bank (EIB) has signed a €500 million, 15-year loan agreement with energy major Eni to convert part of the Sannazzaro de' Burgondi refinery in northern Italy into a large-scale biorefinery, marking a major push toward Europe's clean energy transition.

Turning Fossil Infrastructure into Green Fuel Production

The project will transform an existing refinery unit using Ecofining™ technology, enabling the production of advanced biofuels derived from:

• Used cooking oils

• Animal fats

• Waste from the agri-food industry

A new pre-treatment plant will also be built to process these waste-based feedstocks, reinforcing a circular economy approach to fuel production.

Large-Scale Output by 2028

Once operational, the upgraded facility is expected to:

• Begin production in 2028

• Deliver around 550,000 tonnes of biofuels annually

• Produce both:

  • HVO (Hydrotreated Vegetable Oil) diesel

  • SAF (Sustainable Aviation Fuel)

HVO can already be used in compatible engines and is available at over 1,600 service stations across Europe, while SAF is seen as a critical solution for decarbonising aviation, one of the hardest sectors to transition.

Strategic Role in Europe's Energy Transition

The investment aligns with broader EU goals, including:

• REPowerEU, aimed at strengthening energy security

• The Renewable Energy Directive (RED III) targets

• The ReFuelEU Aviation Regulation, driving demand for SAF

By expanding domestic biofuel production, the project is expected to:

• Reduce reliance on imported fossil fuels

• Lower transport emissions across road, aviation, maritime, and rail sectors

• Enhance energy resilience in Italy and across the EU

EIB Vice-President Gelsomina Vigliotti described the project as "strategic support for decarbonising transport, particularly aviation."

Part of a Broader Biofuel Expansion Strategy

The Sannazzaro conversion follows a similar €500 million EIB-backed project in Livorno (2025) and is part of Eni's wider plan to scale up biofuel production.

Eni aims to:

• Reach 5 million tonnes of biofuel capacity by 2030

• Include over 2 million tonnes of SAF production

Existing and planned facilities include:

• Biorefineries in Venice and Gela (Italy)

• A joint venture plant in Louisiana (USA)

• Upcoming projects in Malaysia, South Korea, and Sicily

Rising Demand for Sustainable Aviation Fuel

Demand for SAF is expected to surge due to regulatory mandates:

• Biofuels currently account for 4% of global transport energy use (2024)

• Projected to reach 9% by 2035 and 12% by 2050 under IEA net-zero scenarios

This growth is driven by policies requiring airlines to blend SAF into conventional jet fuel, making projects like Sannazzaro economically and strategically critical.

Industrial Transition with Economic Impact

Eni CEO Claudio Descalzi emphasized that large-scale industrial projects are essential for a "tangible energy transition", combining:

• Advanced technology

• Industrial-scale production

• Growing market demand

The project also leverages existing infrastructure, reducing costs and accelerating deployment—key factors in scaling up clean energy solutions.

A Model for Europe's Energy Shift

The Sannazzaro project represents a broader trend of repurposing traditional refineries into biofuel production hubs, allowing Europe to:

• Transition existing assets rather than abandon them

• Accelerate decarbonisation timelines

• Build a competitive, sustainable fuel industry

As demand for low-carbon fuels rises, investments like this are expected to play a pivotal role in bridging the gap between fossil fuels and a fully renewable energy system.