The European Investment Bank and the Italian energy group Eni have secured a loan of 500 million euros for a new biorefinery in Sannazzaro de' Burgondi, in Lombardy. With the funds, Eni intends to convert part of the existing refinery for the production of biofuels. The plant is scheduled to produce HVO diesel and sustainable aviation fuel starting in 2028. The planned capacity is approximately 550.000 tonnes per year.
The loan has a term of fifteen years. The project includes the conversion of existing installations, the construction of a pretreatment plant for waste and residual streams, and the adaptation of supporting infrastructure. According to Eni, this concerns, among other things, used frying oils, animal fats, and residual streams from the agri-food sector.
Switchover at existing location
Eni is once again opting to convert an existing refinery in Sannazzaro. The site already possesses the necessary infrastructure and logistical facilities. According to the company, conventional refining will remain on-site, while biofuels will be added.
For the European Investment Bank, this is the second major financing for an Eni biorefinery in a short period of time. In July 2025, both parties already signed a €500 million loan for the conversion of the refinery in Livorno. The new loan fits into Enilive's growth plans, which aim to increase its biofuel production capacity to 5 million tonnes by 2030, of which more than 2 million tonnes will be sustainable aviation fuel.
HVO and SAF
With the new installation, Eni is focusing on fuels for sectors where electrification is progressing less rapidly. HVO is intended as an alternative to fossil diesel in heavy road transport, among others. SAF is intended to contribute to making aviation more sustainable. In this context, Eni names sustainable aviation fuel as one of the available routes to reduce aviation emissions.
The European Investment Bank links the loan to broader European goals regarding energy transition and reducing dependence on fossil fuels. In the press release, the bank also refers to REPowerEU.
Raw materials from residual streams
For the new biorefinery, Eni relies on raw materials such as used oils, animal fats, and other residues. In doing so, the project aligns with a broader trend in Europe, where existing refineries in more locations are being adapted to process biogenic residues into transport fuels. This development is also increasing the demand for such raw materials.
From 2028, biofuel must be produced in Sannazzaro alongside conventional refining.
Source: European Investment Bank
Photo: Franpad – Wikimedia
