Transition

Biofuels, potential to double capacity in Italia

Today plants for three million tonnes will increase with the new conversion of Eni's Livorno hub

by Sara Deganello and Filomena Greco

9 May 2026

3' min read

Translated by AI

Versione italiana

Key points

National production
The potential of biodiesel
Benefits and challenges

3' min read

Translated by AI

Versione italiana

Significant industrial potential, the sword of Damocles of European legislation to 2035 and the need for greater recognition. The biofuel industry in Italia has significant operators and conversion projects, but in some ways risks remaining in the lurch. Although the current Gulf crisis continues to show the limits of Italy's energy dependency.

"In the current context, all fuels are critical, but biofuels have the undoubted advantage of being decarbonised and reducing dependence on imports of finished products or oil," summarises Unem President Gianni Murano. "Moreover, they open up ample possibilities for the creation of European and national supply chains for their production," he continues, "as highlighted by a very recent study by the European Commission Mobilization of Industrial Capacity Building for Advanced Biofuels. The obstacles lie in European legislation that on the one hand indicates the need for them, and on the other hand still does not recognise them as energy carriers to power zero-emission vehicles post 2035. On top of that, there is excessive regulation that tends to complicate the agricultural potential of biofuels.

Domestic Production

Domestic production is around 1.5 million tonnes against a demand of around 2 million. 'We have an already installed production capacity of more than 3 million tonnes that is destined to grow thanks to a third biorefinery under construction in Livorno and other projects,' Murano clarifies.

The reference is to the conversion of Eni's 500 thousand tonne/year plant in Tuscany, which will be ready by 2026. The group's total biorefining capacity currently stands at 1.65 million tonnes per year, with production of Hvo (hydrotreated vegetable oil, usable as diesel) in Venice (400 thousand tonnes, which will become 600 thousand by 2027), in Gela and the USA, and Saf (sustainable aviation fuel), also in Gela from 2025. Products sold in Italia and Europe. By 2030 Eni aims to reach over 5 million tonnes of biofuel production capacity and over 2 million tonnes of Saf; it has several projects under development including in Sannazzaro de' Burgondi and Priolo in Italia, as well as in Malaysia and South Korea.

"With an enabling regulatory framework," Murano further emphasises, "it would be possible to double production capacity and launch specific investments for the partial or total reconversion of refineries and the construction of dedicated plants. According to estimates by Unem's Research Centre, the consumption of petroleum products by 2030 will be reduced by almost 10 million tonnes compared to today, while biofuels and other low-carbon fuels will grow to 6 million tonnes, touching 10 million by 2040.

The potential of biodiesel

Alongside Hvo, biodiesel is also making a comeback (both in fact have the same production base, vegetable oil residues), with producers gathered in Assitol's Biodiesel Group claiming 'industrial and technological maturity' (in Italia we also have the big player Masol Continentale) and calling for a tax adjustment 'that would put biodiesel in a position to compete on equal terms with Hvo and diesel'.

The European Red III regulation envisages that advanced biofuels will cover more than one third of all renewable energy consumed in the transport sector by 2030. In 2023, Italia, first in Europe, legislated on the matter and recognised the possibility of using liquid biofuels not only mixed with diesel, but in purity. 'There are technologies on the market,' says Carlotta Trucillo, deputy director of Assitol's Biodiesel Group, 'that can ensure that biofuels can be optimally adapted to traditional engines, even when used 100% pure. One of these technologies was developed in Italia and we presented it in April'.

The Ministry of Transport, in November, approved vehicles that adopt systems to use biodiesel safely, but there is a lack of fiscal equalisation of the biofuel used mainly in heavy transport compared to diesel and commercial Hvo, particularly for engines above Euro5. 'Generally speaking,' adds Trucillo, 'we need more regulatory confidence in biodiesel, looking for example at vehicles used by public administration and construction sites in cities, to encourage the use of this type of fuel in purity'.

Benefits and Challenges

The environmental impact of biofuels is estimated to be up to 95 per cent less than that of diesel (considering the entire life cycle), as well as less particulate matter, estimated at around 60 per cent less. However, an essential issue remains in the background, that of the certification of supply chains, to reduce the risks linked to fraudulent imports of uncontrolled feedstocks, to avoid conflicts with agriculture connected, for example, with the intensive cultivation of palm oil and rapeseed. And to ensure a real environmental benefit.