Eni Wins Approval to Convert Sannazzaro Refinery Units Into Biorefinery

Eni (NYSE: E) has received approval from Italy’s Ministry of the Environment and Energy Security to begin converting select units at its Sannazzaro de’ Burgondi refinery into a biorefinery, with operations expected to start in 2028.

The project will transform the existing Hydrocracker (HDC2) unit with Eni’s proprietary Ecofining™ technology and add a new pre-treatment unit for waste and residue-based feedstocks. The revamped facility will have the capacity to process 550,000 tonnes annually, producing hydrogenated vegetable oil (HVO) diesel and sustainable aviation fuel (SAF). Hydrogen will be sourced from existing on-site plants, while supporting infrastructure and logistics will be adapted for the new operations.

Importantly, traditional refining activities will continue in parallel, ensuring no loss of capacity. Instead, the biorefinery will complement existing operations while diversifying the product slate. The facility is expected to play a key role in supplying jet fuel and SAF to northwestern Italian airports, with pipeline access to Milan Malpensa and nearby storage depots.

The move underlines Eni’s growing commitment to low-carbon fuels through its subsidiary Enilive. The company is targeting an increase in biorefining capacity from today’s 1.65 million tonnes per year to over 3 million in 2028 and more than 5 million in 2030, including up to 2 million tonnes of SAF.

Eni already operates biorefineries in Venice and Gela, Italy, as well as in Louisiana through a 50% joint venture. A new Livorno facility is due online in 2026, with additional plants under construction in Malaysia and South Korea, and a further Italian site planned in Priolo, Sicily.

This latest approval at Sannazzaro reinforces Eni’s position as Europe’s second-largest HVO producer and signals the acceleration of its energy transition strategy, particularly in the hard-to-abate aviation sector, where SAF demand is rising sharply under EU mandates.

By Charles Kennedy for Oilprice.com

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