Eni Approves Project to Enable Biofuel Production at Pavia Refinery

Why It Matters

The Pavia biorefinery expands Eni’s renewable fuel portfolio, strengthening its position in Europe’s fast‑growing SAF and HVO markets and supporting regional decarbonisation goals. It also illustrates how legacy oil assets can be repurposed for low‑carbon production, accelerating industry‑wide energy transition timelines.

Key Takeaways

• 550k tons/year feedstock capacity at Pavia
• Converts hydrocracker using Ecofining™ technology
• Supports HVO diesel and SAF production
• Part of Eni's goal >3 MMtpa by 2028
• Uses existing hydrogen and logistics infrastructure

Pulse Analysis

Europe’s renewable fuel demand is accelerating, driven by stricter emissions standards and airline commitments to sustainable aviation fuel. Eni’s Pavia conversion taps an existing hydrocracker, applying Ecofining™ technology to transform waste oils and animal fats into high‑quality HVO diesel and SAF. By integrating the new unit with current hydrogen production and logistics, the project minimizes capital outlay while delivering a 550,000‑ton annual feedstock capacity, positioning the refinery as a dual‑track operation that can pivot between fossil and renewable outputs.

The strategic timing aligns with Eni’s broader ambition to more than double its biorefining capacity to over three million tons by 2028 and reach five million tons by 2030. Coupled with the Priolo biorefinery in Sicily and a joint venture in Malaysia, the Pavia facility helps Eni secure a leading share of Europe’s HVO and SAF markets, where demand is projected to grow at double‑digit rates. Competitors such as TotalEnergies and Shell are also scaling biofuel projects, making capacity expansion a critical differentiator for market share and long‑term profitability.

Beyond commercial gains, the Pavia project underscores a shift in asset utilization across the oil‑and‑gas sector. Repurposing mature refining infrastructure reduces the need for greenfield construction, shortens project timelines, and leverages existing supply chains for feedstock collection and hydrogen delivery. As circular‑economy principles gain traction, the ability to process waste streams into transport fuels offers a tangible pathway to meet EU climate targets while delivering tangible returns for investors seeking sustainable growth.