EIB and Eni Sign €500M Deal to Convert Livorno Refinery into Cutting-Edge Biorefinery

In a bold move to accelerate the green energy transition, the European Investment Bank (EIB) and Italian energy giant Eni have inked a €500 million, 15-year finance agreement to support the transformation of Eni’s Livorno refinery in Tuscany into a state-of-the-art biorefinery. The deal was formalized on July 24 at Eni’s headquarters in San Donato Milanese, with EIB Vice-President Gelsomina Vigliotti and Eni CEO Claudio Descalzi in attendance.

Pioneering the Shift to Biofuels

The Livorno biorefinery project stands as a significant step in Eni’s strategic pivot toward sustainable energy. The facility will house a biogenic pre-treatment unit and a 500,000-tonne-per-year Ecofining™ plant that will utilize Eni’s proprietary technology to produce hydrogenated biofuels. These fuels, known as HVO (Hydrogenated Vegetable Oil), are made from renewable feedstocks like used cooking oil and agrifood waste and can be used in approved engines without any changes to infrastructure.

The project is spearheaded by Enilive, Eni’s dedicated entity for sustainable mobility solutions. According to Descalzi, “This agreement reinforces our tangible and quality-driven commitment to decarbonization, confirming the effectiveness of our investments in existing and emerging low-emission technologies. With Livorno, we are now converting our third refinery into a biorefinery, following the successful transformations in Venice and Gela.”

Strategic and Environmental Significance

For the EIB, the financing underscores a broader commitment to climate action and technological innovation. “The EIB financing is key to delivering a project of high environmental, technological and strategic value,” said Vigliotti. “It demonstrates how industrial innovation can support the decarbonisation of transport while creating sustainable regional value.”

The Livorno facility will be capable of processing various biogenic materials—primarily waste and plant-based residues—into several biofuels including HVO diesel, HVO naphtha, and bio-LPG. In the long term, the plant could also be adapted to produce Sustainable Aviation Fuel (SAF), aligning with EU priorities for decarbonizing the aviation sector and enhancing the investment’s flexibility.

Meeting National and EU Climate Goals

The conversion project is aligned with both Italy’s and the European Union’s decarbonization frameworks. Italy aims to scale up pure biofuel usage from 300,000 tonnes annually in 2023 to 1 million tonnes by 2030. The new biorefinery will play a crucial role in meeting these targets while helping to fulfill obligations under the EU’s RED III directive (Renewable Energy Directive), which mandates higher renewable fuel use.

Moreover, the global demand for hydrogenated biofuels is forecasted to surge by 65% between 2024 and 2028. Eni’s proactive investment positions the company—and Italy—as a leader in sustainable transport fuels just as international markets and regulatory pressures converge toward cleaner alternatives.

Broader Implications

This initiative adds momentum to the EU’s green energy transformation, offering immediate solutions to reduce emissions from various transportation modes, including road, air, maritime, and rail. HVO biofuels, being fully compatible with existing engines and distribution systems, offer a “drop-in” solution that eliminates the need for costly infrastructural overhauls.

Through this financing partnership, the EIB and Eni not only bolster Italy’s biofuel production capabilities but also contribute to Europe's broader ambition of climate neutrality by mid-century. The Livorno conversion represents a blueprint for how traditional fossil fuel infrastructure can be repurposed for a cleaner, more sustainable future.