Italy’s refining sector is undergoing another structural shift. Enilive, the mobility arm of Eni, has approved a final investment decision to convert selected units at the Sannazzaro de’ Burgondi refinery into a biorefinery, adding to the previously announced transformation of Priolo refinery.
Both projects are scheduled for completion by 2028 and are central to Eni’s ambition to lift biorefining capacity from 1.65 million tonnes per year today to more than 3 million tonnes by 2028 and over 5 million tonnes by 2030. SAF capacity alone could reach up to 2 million tonnes annually by the end of the decade.
For the EPC market, this is not just a fuels story. It is a multi year conversion program with meaningful process, mechanical and infrastructure packages coming into play across northern and southern Italy.
Sannazzaro conversion scope and packages
At Sannazzaro, the project centers on converting the existing HDC2 hydrocracker using Ecofining technology, alongside construction of a dedicated pre treatment unit for waste and residue feedstocks. Hydrogen supply will be secured from existing onsite plants, while logistics and airport connectivity in Lombardy will be adapted to support SAF distribution.
The new unit will be capable of processing 550,000 tonnes per year of feedstock, with flexibility to swing between HVO diesel and SAF biojet depending on market demand. Importantly, traditional fuel production at the refinery will continue, meaning this is an incremental addition rather than a full site repurposing.
From an EPCIntel.com database perspective, a 0.5 to 0.6 million tonne per year hydroprocessing conversion with new pretreatment and offsites typically carries an installed cost in the range of 600 million to 900 million dollars, depending on revamp complexity and hydrogen integration. Given the brownfield nature and use of existing hydrogen assets, Sannazzaro is likely toward the mid range of that band.
Typical capital allocation would break down as follows:
Process units, including hydrocracker modification and pretreatment, 40 to 45 percent
Hydrogen and utilities tie ins, 10 to 15 percent
Storage, blending and product handling, 10 to 15 percent
Offsites and logistics adaptations, including airport connectivity, 10 to 15 percent
EPC management, construction and commissioning, 15 to 20 percent
This creates clear opportunities for hydroprocessing licensors, hydrogen system integrators, tankage contractors and regional civil and mechanical subcontractors.
Priolo rebuild within existing footprint
At Priolo in Sicily, the biorefinery will replace the former cracking plant that has ceased operations and is being dismantled. The new facility will have capacity of 500,000 tonnes per year, again with flexibility between HVO and SAF production.
Preparatory works are underway ahead of procurement and construction contract awards, making this site particularly relevant for contractors tracking near term tender activity. As part of the broader Versalis transformation plan, Priolo represents a structural pivot from basic chemicals toward biofuels.
A new build biorefinery of this scale, even within an existing refinery footprint, typically trends slightly higher in capital intensity than a straightforward hydrocracker conversion. EPCIntel benchmarking suggests a probable range of 800 million to 1.1 billion dollars, driven by new unit installation, utilities reconfiguration and demolition of legacy assets.
Package distribution is broadly similar to Sannazzaro but with a heavier weighting on new process units and demolition works. Civil, structural and mechanical scopes are expected to be substantial, particularly during the transition phase between dismantling and new module installation.
Strategic positioning and contractor outlook
Eni is already the second largest HVO producer in Europe, and these two projects solidify its intent to defend and expand that position. The flexibility to toggle between HVO diesel and SAF biojet is a strategic hedge against evolving mandates in road transport and aviation.
For EPC players, the story is twofold. First, Italy is emerging as a concentrated hub for biofuel conversion, with repeatable hydroprocessing and pretreatment modules that can drive standardization and margin improvement. Second, hydrogen integration and feedstock pretreatment are becoming critical differentiators in bid strategies.
As European refiners reassess long term fossil demand curves, brownfield biorefinery conversions offer one of the most bankable transition pathways. With Sannazzaro and Priolo now backed by FID, the next wave of procurement will determine which contractors lock in a front row seat in Europe’s SAF and HVO build out.
For those tracking biorefinery EPC awards and package splits globally, these two Italian projects will be reference cases through 2028.
