Eni’s position on biomass

Eni is aware of the need to maintain a responsible approach to the issue of biomass that goes beyond mere compliance with the law. Therefore, to ensure sustainable management right throughout the supply chain that involves converting certain refineries into biorefineries, it has outlined a series of general principles and selective criteria and stopped the palm oil supply to the Venice and Gela biorefineries. Furthermore, where deemed necessary, Eni will evaluate the need to define specific policies for other biomasses used. The rules that Eni follows comply with sustainability standards in the selection of suppliers and the definition of clauses in biomass supply contracts and, with respect to certified raw materials, guarantee the following:

• that they do not come from cultivated areas obtained from the conversion of areas characterised by a high carbon content, such as wetlands and forests
• that they do not come from ecosystems characterised by high levels of biodiversity, such as areas covered by primary or secondary forest or in any case from ecosystems of recognised natural value
• that specific certification schemes are, where applicable, certified according to sustainability standards recognised at European or international level.

At the Venice and Gela biorefineries, approximately 80% of the materials that fed the plant in 2022 consisted of used vegetable oils, soap pastes and other waste.

In 2021 and in 2022, Eni traced 100% of the mills and plantations from which its palm oil was sourced for the Venice and Gela biorefineries. 100% of the palm oil used was certified by ISCC.

Eni's strategy from now until 2050 is to transform itself into a company that will only sell decarbonized products, so as to limit their environmental impact as much as possible. The Strategic Plan 2023-2026 establishes an acceleration in the targeted biorefining capacity for Enilive (incorporated in 2023 combining biorefining, biomethane and the sale of mobility products) to a capacity of over 3 MTPA by 2025 and over 5 MTPA by 2030, with the contribution of the initiatives in Italy, Malaysia and the US. With the vertical integration with Upstream activities, a production of 700,000 tonnes of agri-feedstock by 2026 to supply Eni’s biorefineries is also envisaged.

Eni endeavours to:

• ensure the transparency and disclosure of information relating to the biomasses used and the country of origin, providing this information at least once a year (for 2022 data see Eni for 2022 – Sustainability performance)
• select suppliers according to high sustainability standards and mutual cooperation to improve the sustainability of the supply
• collaborate with stakeholders and experts in the field to improve its knowledge and ensure compliance with the most advanced standards within the company
• develop the best technological solutions, including through its own research units
• continuously improve its procurement process in order to reduce the use of biomass that can generate competition with agri-food chains and to continue the search for alternative feedstocks
• promote, where appropriate, the use of product life cycle studies in order to monitor and reduce the associated environmental impacts
• gradually increase the share of advanced feedstocks, in line with what is defined in the 2030 objectives of the RED recast (Directive 2018/2001).

We have converted two traditional refineries into biorefineries using the Ecofining™ technology developed by Eni's research in conjunction with UOP. We did this to address the challenges posed by the structural crisis in refining and to comply with the requirements of European legislation on the quota of energy produced from renewable sources, anticipating the energy transition pathway. This strategy has enabled us to directly produce the quota of HVO (hydrotreated vegetable oil) biofuel necessary to comply with the legislation. Thanks to the flexibility of the Ecofining™ technology that allows us to process various types of biomass, Eni is increasing the use of alternative feedstocks (such as used cooking and frying oils, animal fats and waste from vegetable oil processing) by experimenting with advanced feedstocks (such as algae and waste oils, lignocellulosic material and bio-oils). Eni’s biofuel production complies with the requirements set by the EU voluntary schemes for compliance with sustainability criteria and the reduction of climate-changing gas emissions pursuant to the European Union’s Renewable Energy and Fuel Quality directives.

In October 2022, Eni announced it would stop supplying palm oil to the Gela and Venice biorefineries for hydrogenated biofuel production, well ahead of current legislation and previous forecasts. Since October 2022, the two biorefineries are supplied for over 85% by ‘waste & residue’ raw materials, such as UCO (used cooking oils), animal fats and other biomasses governed by current European and Italian regulations.

Furthermore, in November 2022, the first load of vegetable oil produced by pressing castor, croton and cotton seeds in the Makueni agri-hub, in Kenya, reached the Gela biorefinery. These agri-feedstocks are not in competition with the food supply chain, as they are cultivated in degraded areas, or harvested from wild trees, or are obtained by enhancing agricultural by-products. In 2023, feedstock production in Eni agri-hubs in Kenya is estimated to reach 20,000 tonnes, while the waste & residue collection – including UCO – shipped to Italy from Kenya for Eni biorefineries should reach 5,000 tonnes.

Eni’s biorefineries produce hydrogenated HVO biofuels, in purity or mixed, for diesel engines, bio naptha fuel for the chemical supply chain, and bioLPG and bioJET for air transport. HVOlution, 100% pure HVO, is currently available in 50 Eni live stations in Italy, increasing to 150 by the end of April 2023. Hydrogenated vegetable oil can also be used in all type-approved engines, allowing for a reduction in CO2 emissions. According to the conventional criterion of the 'REDII’ Directive (EU) 2018/2001, the reduction of CO_2eq emissions of HVOlution, used in purity along the logistic-production chain in 2022, was between 60% and 90%, compared to the fossil reference mix (i.e. 94g CO_2eq/MJ), depending on the raw materials used for its production.

Waste oil can be turned into biofuel. With our patented Ecofining^TM system, we can turn organic raw materials into high-quality biofuel, whose technical term is HVO (Hydrotreated Vegetable Oil). Oilà! is Eni's initiative launched in July 2018 and addressed to Eni’s employees, aimed at recovering used domestic food-grade and frying oil. The purpose is to turn waste that could be potentially harmful to the environment into a new resource: around 6,800 employees from the Venice, Rome, Taranto, Sannazzaro and Livorno facilities have collected 15,565 litres of oil since the project begun. Data on this collection confirm the company’s commitment even in in-house initiatives, which contributed to the implementation of a circular economy process in the sites where Oilà was launched.