Eni Greenlights €1.4 B Sannazzaro Biorefinery with 1.2 Mtpa Renewable Fuel Capacity
Eni approved a €1.4 billion final investment decision to convert its Sannazzaro refinery in Italy into a 1.2 million-tonne-per-year biorefinery producing renewable diesel and sustainable aviation fuel by 2025. The move raises Eni’s total biofuel output capacity to 2.6 million tonnes annually and underpins its 2030 emissions-reduction targets.
1. Final Investment Decision Approved
Eni’s board has signed off on a €1.4 billion final investment decision to convert the Sannazzaro di Pavia oil refinery into a dedicated biorefinery. This FID marks a major step in replacing fossil processing with renewable fuel production within a key Italian asset.
2. Project Scope and Timeline
The conversion will retool refining units to produce 1.2 million tonnes per annum of hydrotreated vegetable oil and sustainable aviation fuel, with mechanical completion and start-up scheduled by mid-2025. Modifications include new hydrogen generation, hydrotreating units and storage capacity optimised for biofeedstocks.
3. Strategic and Environmental Impact
By boosting its biofuel capacity to 2.6 million tonnes annually, Eni strengthens its low-carbon portfolio and advances its target to halve Scope 1 and 2 emissions by 2030. The Sannazzaro biorefinery will supply domestic and export markets, supporting Europe’s renewable transport fuel demand and compliance with upcoming EU mandates.
4. Financial and Operational Implications
The €1.4 billion investment is expected to deliver an internal rate of return above 10%, driven by biofuel margin improvements and carbon credit generation. Eni anticipates the biorefinery will enhance cash flow from operations and diversify its refining margin profile as conventional fuel demand gradually shifts.