Eni Blue Hydrogen Strategy, €500 M EIB Livorno Deal, Hy Net UK Pipeline Approval, and 3 Biorefinery Projects (2025)

How Eni Uses Biofuel and CCUS Projects to De-Risk Its Hydrogen Strategy

In 2025, Eni solidified a pragmatic hydrogen strategy that prioritizes using the molecule as an industrial tool for near-term revenue over pursuing speculative green hydrogen production. The company focused its capital on converting existing refineries to produce hydrogenated biofuels and advancing large-scale Carbon Capture, Utilisation, and Storage (CCUS) infrastructure. This dual-pronged approach leverages Eni’s existing assets and expertise, creating immediate internal demand for hydrogen in its biorefining processes while building the foundational assets for a future blue hydrogen economy. This execution-focused model, in contrast to the ambitious but less mature green hydrogen ventures announced by competitors like Total Energies, positions Eni as a more conservative but financially grounded player in the energy transition.

The Hydrogen-Biofuel Nexus

Eni’s 2025 activities demonstrated a clear focus on creating a captive market for hydrogen within its own operations. By prioritizing the conversion of traditional refineries into biorefineries, Eni generates immediate demand for hydrogen as a critical processing agent in the production of Hydrotreated Vegetable Oil (HVO), or renewable diesel. This strategy was solidified with the July 2025 announcement of a €500 million EIB financing deal for its Livorno refinery conversion. This project, along with the advancement of a similar 500, 000-tonne/year biorefinery in Priolo, Sicily, directly links hydrogen consumption to the production of high-value, low-carbon liquid fuels. This approach provides a tangible, revenue-generating use for hydrogen today, avoiding the offtake uncertainty facing many pure-play hydrogen producers.

CCUS as the Blue Hydrogen Precursor

While Eni uses hydrogen as a tool for biofuels, it is simultaneously building the infrastructure for its long-term blue hydrogen ambitions. In 2025, the company achieved critical milestones for its CCUS projects, which are essential for producing hydrogen from natural gas with low emissions. The April 2025 financial close with the UK government for the Hy Net North West project’s Liverpool Bay CCS component was a major step. This was followed by the approval of a 38-mile carbon capture pipeline set to become operational in 2028. These assets are not merely for industrial decarbonization; they represent the physical, de-risked infrastructure that will enable large-scale blue hydrogen production, a strategy also being pursued by peers like Shell and Exxon Mobil in other regions.

€500 M EIB Deal and UK Gov’t Backing: Eni Secures Major Hydrogen-Enabling Capital

Eni’s 2025 investments were characterized by financial prudence, targeting projects with clear commercial pathways and strong institutional support. Instead of allocating significant capital to speculative green hydrogen production, the company focused on securing financing for biorefinery conversions and advancing CCUS projects that were de-risked through government partnerships. This approach ensures capital is deployed into assets that either generate immediate returns or build essential, long-term infrastructure with validated economics.

Livorno’s €500 M Biorefinery Conversion

The cornerstone of Eni’s investment activity was the €500 million, 15-year finance contract secured from the European Investment Bank (EIB) in July 2025. This capital is dedicated to converting the Livorno refinery into a production hub for hydrogenated biofuels. The EIB’s backing serves as a powerful validation of Eni’s strategy, confirming the financial viability of repurposing legacy assets for low-carbon fuel production. This investment directly funds the construction of new plants, including a biogenic pre-treatment unit, where hydrogen will be a critical feedstock.

Hy Net’s Financial Close

In the UK, Eni reached a pivotal milestone by achieving financial close with the Department of Energy Security and Net Zero for the Liverpool Bay CCS project in April 2025. As the operator of the Hy Net North West industrial cluster, this agreement solidifies the financial pathway for a project that underpins the UK’s industrial decarbonization and blue hydrogen ambitions. While a specific capital figure for Eni was not disclosed, reaching financial close with a government partner significantly de-risks the project and signals a firm commitment to building out the necessary infrastructure for a blue hydrogen economy.

Table: Eni Key Hydrogen-Related Investments and Projects (2025)

Eni’s 4 Strategic Alliances: Saipem, GIP, Petronas, and Snam Partnerships Deepen Execution

In 2025, Eni leveraged strategic partnerships to secure the technical, financial, and operational capabilities required to execute its hydrogen-centric industrial strategy. Rather than attempting to build all competencies in-house, Eni formed alliances with specialized engineering firms, infrastructure investors, and national oil companies. This collaborative model accelerates project delivery, de-risks capital-intensive ventures, and extends the company’s strategic reach into new markets.

Engineering and Financial Alliances

To ensure the successful conversion of its refineries, Eni extended its collaboration agreement with Italian engineering and construction giant Saipem in March 2025. This partnership provides access to the specialized expertise needed for complex biorefinery projects. On the financial front, Eni finalized a landmark strategic partnership with Global Infrastructure Partners (GIP) in December 2025. This deal established joint control over Eni’s CCUS holding company, bringing in significant financial acumen and signaling a clear intent to build a large-scale, commercially independent CCUS business capable of serving third-party emitters and its own blue hydrogen ambitions.

International and Domestic Expansion

Eni expanded its biorefining model internationally through a joint venture between its subsidiary Enilive, Petronas, and Euglena to develop a biorefinery in Johor, Malaysia. This move replicates its successful domestic strategy in the strategic Asian market. Domestically, Eni strengthened its CCUS capabilities through a partnership with Snam to develop the Ravenna CCS project, targeting the capture of 25 ktons of CO₂ annually from Eni’s natural gas treatment plant, another key enabler for blue hydrogen in Italy.

Table: Eni Key Hydrogen-Related Partnerships (2025)

Italy, UK, and Malaysia: Eni’s Geographic Focus on Strategic Hydrogen Hubs

Eni’s 2025 activities were not randomly distributed but concentrated in specific geographic hubs where supportive regulations, existing infrastructure, and strategic partnerships created a favorable environment. This focused approach allows the company to build regional strongholds in Italy for biorefining and the UK for CCUS and blue hydrogen, while using a joint venture model to test its strategy in the growing Asian market.

The Italy-UK Industrial Axis

Italy serves as the heart of Eni’s biorefining strategy, leveraging the company’s existing industrial footprint. The advancement of major projects at the Livorno and Priolo refineries demonstrates a commitment to repurposing domestic assets and securing a leading position in the European biofuels market. Simultaneously, the UK has become Eni’s primary theater for its CCUS and blue hydrogen ambitions. The significant progress on the Hy Net North West project, underpinned by strong UK government support for industrial decarbonization, makes it the ideal location to build out the large-scale infrastructure required for a future blue hydrogen economy.

Asian Market Entry via Malaysia

Beyond its European strongholds, Eni made a strategic move into Asia by forming a joint venture with Petronas and Euglena to develop a biorefinery in Malaysia. This partnership is significant as it exports Eni’s proven biorefining model to a region with growing demand for sustainable fuels. It allows Eni to gain a foothold in the Asian market alongside a powerful regional partner, de-risking its entry and providing a template for potential future expansions.

Commercial Scale: Eni Deploys Proven Tech for Biofuels and CCUS Infrastructure

In 2025, Eni’s technology strategy was one of deployment, not discovery. The company focused on implementing mature, commercially proven technologies at scale to achieve its near-term objectives. By prioritizing hydrotreatment for biofuels and established CO 2 transport methods for CCUS, Eni deliberately sidestepped the technological and economic uncertainties associated with nascent technologies like large-scale green hydrogen electrolysis. This contrasts with the broader industry trend, where a 2025 World Economic Forum report noted that fewer than 10% of announced gigawatt-scale green hydrogen projects had reached a final investment decision.

Hydrotreatment and CCUS Deployment

The core technologies in Eni’s 2025 initiatives are well-established. Hydrotreatment, the process used in the Livorno and Priolo biorefineries, is a mature technology that uses hydrogen to upgrade bio-feedstocks into high-quality liquid fuels. Eni’s innovation lies in applying this technology at an industrial scale within converted refineries. Similarly, the technologies for CO 2 capture and pipeline transport, central to the Hy Net and Ravenna projects, are proven. The approval of a 38-mile CO 2 pipeline for Hy Net underscores the readiness of this infrastructure technology for large-scale commercial deployment, providing a tangible path to decarbonization and future blue hydrogen production.

SWOT Analysis: Eni’s Pragmatic Hydrogen Strategy and Competitive Risks

My analysis of Eni’s 2025 activities reveals a strategy that is strong in financial discipline and leverages existing assets to navigate the energy transition. However, this pragmatic approach also exposes the company to risks from faster-than-expected advancements in green hydrogen technology and a perception of being a less ambitious player in the clean energy race compared to rivals like BP or Chevron.

Table: SWOT Analysis for Eni’s Hydrogen-Related Strategy

Eni’s Hy Net Project Execution: A Litmus Test for Blue Hydrogen Viability

The most critical indicator for Eni’s strategy moving forward is the tangible construction and commissioning progress of its Hy Net North West CCUS infrastructure. Achieving the 2028 operational start date for the newly approved CO 2 pipeline is paramount, as the success of its entire UK blue hydrogen strategy depends on this foundational asset. Any delays or cost overruns in this project would have significant ripple effects on Eni’s decarbonization timeline and the commercial viability of its blue hydrogen plans.

• Watch for Construction Milestones: Monitor announcements regarding the start of construction for the 38-mile CO 2 pipeline and associated compression and storage facilities. Progress on the ground will be the clearest signal that the project is on track.
• Final Investment Decisions (FIDs) on Biorefineries: The extended collaboration with Saipem suggests more refinery conversions are planned. An FID on another major conversion in Italy or elsewhere in Europe would confirm the scaling of this strategy and increase Eni’s internal demand for hydrogen.
• Third-Party CCUS Contracts: Look for the first commercial agreements signed by the new Eni-GIP CCUS holding company. Securing contracts with third-party industrial emitters would validate the “CCUS-as-a-service” model and signal the creation of a new, independent revenue stream.

The questions your competitors are already asking

This report covers one angle of how major energy companies are de-risking their hydrogen investments. The questions that matter most depend on your work.

• TotalEnergies hydrogen strategy versus Eni
• HyNet UK pipeline construction timeline
• Eni GIP carbon capture business model
• European market demand for renewable diesel

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