Italian energy giant Eni has secured a US$579 million financing agreement with the European Investment Bank to convert part of its Sannazzaro refinery into a modern biorefinery, marking a significant step in Europe’s push toward cleaner energy and reduced carbon emissions.
The deal, equivalent to €500 million, is structured as a 15-year loan and will fund the transformation of selected units at the Sannazzaro de’ Burgondi refinery in northern Italy. This project is part of Eni’s broader strategy to expand its biofuel production capacity and align with European decarbonisation goals.
At the core of the project is the conversion of the refinery’s hydrocracking unit using advanced Ecofining technology, alongside the construction of a pre-treatment facility designed to process waste-based feedstocks such as used cooking oil, animal fats and agricultural residues. These materials will serve as the primary inputs for producing hydrotreated vegetable oil diesel and sustainable aviation fuel, both of which are seen as critical to reducing emissions in transport and aviation.
Once operational, the upgraded facility is expected to produce around 550,000 tonnes of biofuels annually, with production slated to begin in 2028. The development will not replace existing fuel production but will operate alongside traditional refining activities, allowing Eni to diversify its output while maintaining energy supply stability.
The investment reflects a broader shift within Europe’s energy sector, where traditional oil and gas companies are increasingly pivoting toward renewable and low-carbon alternatives. Biofuels, particularly sustainable aviation fuel, are gaining attention as one of the few viable solutions to decarbonise sectors that are difficult to electrify, such as long-haul aviation.
For the European Investment Bank, the financing aligns with its mandate to support climate action and sustainable infrastructure. The institution has been actively backing projects that contribute to the European Union’s climate targets, including reducing greenhouse gas emissions and enhancing energy security.
This is not the first collaboration between Eni and the EIB in the bioenergy space. The two entities previously signed a similar financing agreement in 2025 to support the conversion of another refinery in Livorno, highlighting a growing partnership focused on accelerating the energy transition.
The Sannazzaro project also fits into Eni’s long-term plan to significantly scale up its biofuel production. Through its sustainable mobility arm, Enilive, the company aims to increase its biorefining capacity to over 5 million tonnes per year by 2030, with a substantial portion dedicated to sustainable aviation fuel.
Industry analysts view such investments as essential for maintaining competitiveness in a rapidly evolving energy landscape. As governments tighten environmental regulations and push for net-zero emissions, energy companies are under increasing pressure to adapt their business models or risk falling behind.
At the same time, the project underscores the importance of balancing environmental goals with energy security. By repurposing existing infrastructure rather than building entirely new facilities, Eni can accelerate the transition while controlling costs and minimising disruption to fuel supply chains.
The Sannazzaro biorefinery is also expected to deliver economic benefits at the regional level, supporting jobs, technological development and industrial innovation in Italy’s energy sector. It reinforces the country’s role as a key player in Europe’s transition to cleaner fuels.
Ultimately, the agreement signals a clear direction of travel for the energy industry. The future is not just about abandoning fossil fuels overnight, but about transforming existing systems into more sustainable ones. With projects like Sannazzaro, companies like Eni are attempting to bridge that gap, blending traditional energy expertise with new technologies to meet the demands of a low-carbon world.
