The European Investment Bank ( EIB ) has signed a €500 million ( US$579.17 million ), 15-year loan to support the conversion of Eni's Livorno refinery in Tuscany, Italy into a biorefinery.

The project involves the construction of new plants to produce hydrogenated biofuels at the site, including a biogenic pre-treatment unit and a 500,000-tonnes-per-year ecofining plant.

Ecofining is a proprietary technology, through which Eni’s sustainable mobility unit, Enilive, produces HVO ( hydrogenated vegetable oil ). This is a biofuel made from renewable raw materials such as used cooking oil and agrifood waste.  Pure HVO can now be used in approved engines and is distributed through existing infrastructure.

The agreement was signed at Eni’s headquarters in San Donato Milanese by EIB vice-president Gelsomina Vigliotti and Eni chief executive officer Claudio Descalzi.

“The EIB financing is key to delivering a project of high environmental, technological, and strategic value, helping to promote the decarbonization of the transport sector," says Vigliotti. "This is a concrete example of how industrial innovation can accelerate the path towards climate neutrality, while generating sustainable value for regions.”

This is the third Eni refinery being converted into a biorefinery in Italy, following similar projects in Venice and Gela.

Emission reduction targets

HVO biofuels can make an immediate contribution to reducing transport sector emissions generated not only on roads, but also by air traffic as well as maritime and rail transport.

The conversion of the Livorno site is in line with Enilive's strategy to increase the production of biofuels in response to growing demand in Europe and Italy, meet emission reduction targets under the European Union’s Renewable Energy Directive III, and the obligations to release pure biofuels for use as defined by Italian legislation.

Worldwide, it is estimated that the demand for hydrogenated biofuels will increase by 65% from 2024 to 2028. The Livorno biorefinery will be able to treat different types of biogenic charges, mainly waste and residues of plant origin, to produce HVO diesel, HVO naphtha, and bio-LPG.

Among the distinctive features of the project is that, aside from the adoption of advanced technologies, the layout of the plant can be modified to also produce sustainable aviation fuel ( SAF ), a key element in efforts to decarbonize aviation. This gives flexibility to the investment and brings it up to speed with the environmental priorities of the European Union, broadening its potential impact.