Summary sheet
The Project concerns the conversion of existing plants, part of the refinery located in Sannazzaro de' Burgondi (Italy) into a biorefinery to produce sustainable aviation fuel (SAF), as well as HVO diesel, HVO naphtha and HVO LPG from similar non-food feedstocks.
The Project is a significant contributor to the EU Green Deal and the Fit for 55 package, aiming to decarbonize the transport sector in line with the Renewable Energy Directive (REDIII) requirements. By focusing on the production of sustainable aviation fuel (SAF), the Project intends to replace part of fossil-based jet fuel, thereby decarbonizing the aviation sector and helping to meet the ReFuelEU Aviation regulation targets. Additionally, the facility's capability to produce biofuels extends beyond aviation to other transport segments, such as road and maritime transport, furthering the Project's impact on reducing emissions across multiple sectors. The Project also supports the RePowerEU objectives by bolstering the EU's capacity to produce clean alternatives to fossil fuels, thus reducing reliance on fossil fuel imports and enhancing overall energy security .
The Project is implemented by an experienced Promoter that has a strong experience in the biofuels sector, including in similar projects. The Project allows ENI Group to increase the share of low carbon fuels it produces, supporting the Company's shift towards sustainability. In fact, the Project will allow the partial conversion of the Sannazzaro refinery into a biorefinery site.
The produced Sustainable Aviation Fuel (SAF) will deliver significant Greenhouse Gas (GHG) savings, in a hard to decarbonise sector as Aviation Aviation and, in alternative, HVO diesel production will bring an additional and immediate contribution to reducing emissions (calculated across the entire value chain) in the transport sector, including not only road, but also maritime, and rail transport. This will result in economic returns that are significantly higher than the financial returns.
The Bank's financial contribution is considered valuable to the client, as the EIB's offering is more favourable than other market alternatives under various dimensions (e.g. longer tenor, availability and grace periods, convertible or revisable rates). The EIB loan will further diversify the Borrower's financing sources, complementing those from commercial banks and the capital markets.
The Project will be appraised and monitored in line with the relevant EIB's policies, including the Environmental and Social Sustainability Framework. The compliance with the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU) and with the Industrial Emissions Directive 2010/75/EU will be verified during the appraisal.
The EIB has assessed the Promoter as a private company not subject to EU rules on public procurement or concessions. However, if during the Project appraisal the EIB determines that the Promoter is subject to EU public procurement legislation, the European Commission will be notified, and the Promoter will need to comply with those rules.