Eni Secures $575.62M Loan From European Investment Bank for New Italian Biorefinery

Why It Matters

The loan accelerates Europe’s transition to low‑carbon transport fuels, helping meet EU blending mandates and Eni’s ambition to become a leading biofuel supplier. It also signals strong financial backing for large‑scale renewable projects amid tightening climate policies.

Key Takeaways

• Eni secures $576 million loan for Sannazzaro biorefinery.
• New plant adds 550,000 t/yr biofuel capacity by 2028.
• Project will produce HVO diesel and sustainable aviation fuel.
• Supports EU ReFuelEU mandates and Renewable Energy Directive targets.
• Eni aims for 5 MMtpa biofuel capacity by 2030.

Pulse Analysis

Europe’s push for decarbonised transport has turned biofuels into a strategic commodity. The EU’s Renewable Energy Directive and the ReFuelEU Aviation Regulation set ambitious blending targets that require a steady supply of advanced fuels such as hydrogenated vegetable oil (HVO) diesel and sustainable aviation fuel (SAF). Major oil majors are repurposing existing refineries to meet this demand, and Eni has positioned itself at the forefront by leveraging its existing biofuel assets in Venice, Gela and the United States. The company’s roadmap targets 5 million metric tons of biofuel production by 2030, with SAF accounting for more than two million tons.

The European Investment Bank’s €500 million loan to Eni’s Sannazzaro de’Burgondi project provides the financial heft needed to convert a conventional refinery into a dual‑track biorefinery. The 15‑year facility will handle 550,000 t/yr of waste‑derived feedstock, generating both HVO diesel and SAF for launch in 2028. By pairing low‑cost capital with Eni’s technology platform, the deal reduces the pay‑back period and improves project economics, echoing the earlier €500 million EIB commitment for the Livorno conversion. Together, the two projects add roughly one million tons of renewable fuel capacity to Europe’s supply chain.

Beyond the immediate output, the financing underscores a growing confidence among multilateral lenders in large‑scale renewable infrastructure. For Eni, the Sannazzaro plant complements parallel ventures in Sicily and Malaysia, creating a diversified feedstock base that spans waste oils, animal fats and residues. Competitors such as TotalEnergies and Shell are also expanding their biofuel portfolios, intensifying market competition. If demand for SAF accelerates as airlines chase compliance with EU mandates, Eni’s early‑stage capacity could capture premium pricing, while the added HVO output supports immediate emissions cuts across road, rail and maritime sectors.

Deal Summary

Eni SpA and the European Investment Bank (EIB) have executed a 15‑year €500 million ($575.62 million) loan to fund the conversion of the Sannazzaro de’Burgondi refinery in Pavia into a biorefinery. The financing will support the addition of 550,000 metric tons per year of biofuel feedstock capacity, with operations slated to start in 2028. This marks Eni’s second biorefinery project backed by the EIB.