The European Investment Bank and Eni signed a €500 million financing agreement in April 2026 to convert a refinery into a what?

A significant financial agreement was recently struck between the European Investment Bank (EIB) and the Italian energy company Eni, providing €500 million in funding for a transformative project. This investment, formalized in April 2026, is dedicated to converting a traditional refinery into a biorefinery. This move represents a shift towards more sustainable energy production, as a biorefinery is a facility designed to process biomass, rather than crude oil, into various bio-based products, including fuels, power, and chemicals.

The specific refinery undergoing this conversion is located in Sannazzaro de' Burgondi, Italy. The project involves upgrading existing units, particularly the hydrocracker, with Ecofining™ technology and constructing a new pretreatment plant. This setup will enable the facility to utilize waste materials such as used cooking oils, animal fats, and residues from the agri-food industry as its primary feedstocks. From 2028, the converted plant is expected to produce approximately 550,000 metric tons per year of hydrotreated vegetable oil (HVO) diesel and sustainable aviation fuel (SAF), which are critical for decarbonizing the transport sector.

This initiative is a key part of Eni's broader strategy to increase its biofuel production capacity to 5 million metric tons by 2030, with a substantial portion dedicated to SAF. The EIB's support for such projects underscores Europe's commitment to strengthening its capacity for advanced fuel production and promoting a circular economy. By transforming existing infrastructure to produce renewable fuels from waste, this partnership aims to reduce the carbon footprint of transportation and enhance energy security.