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.