Eni CCUS & Biofuel Strategy, €500 M Livorno Loan, Black Rock Stake Sale, and $1 B Fusion Deal (2021 to 2026)

Eni’s Commercial Scale Biofuel and CCUS Projects

Eni is executing a strategic pivot from planning to commercial-scale deployment in its core sustainability ventures, primarily biofuels and carbon capture, utilization, and storage (CCUS). This shift is defined by the conversion of legacy refining assets into biorefineries and the establishment of a financially independent CCUS business unit, both moves designed to leverage existing infrastructure and de-risk capital-intensive growth through strategic partnerships and dedicated financing.

Eni’s Biorefinery Conversion and Scale-Up

The company is aggressively converting its traditional refineries into hubs for sustainable fuel production. In the 2021-2024 period, this strategy was largely in the planning and early execution phase, with announced intentions to convert facilities like the Gela refinery to produce Sustainable Aviation Fuel (SAF). The period since January 2025 marks a significant acceleration into commercial reality. The successful production of 40, 000 tonnes of SAF in 2025 from its Sicilian refinery demonstrates operational capability, while a landmark €500 million finance agreement with the European Investment Bank (EIB) in July 2025 provides the dedicated capital to complete the conversion of its Livorno refinery. This progress supports Eni’s ambitious target to expand its biofuel processing capacity from 1.1 million tonnes per year in 2022 to over 5 million tonnes by 2030.

Eni’s CCUS Infrastructure Development

Eni’s approach to CCUS has matured from a concept into a structured, well-capitalized business line. The company established a dedicated entity for its carbon capture initiatives and, in a key strategic move in August 2025, sold a 49.99% stake to Black Rock’s Global Infrastructure Partners (GIP). This transaction validates Eni’s “satellite” financing model and provides the necessary capital to build out a large-scale decarbonization service. The infrastructure is scheduled to become operational in 2028 with an initial capacity of 4.5 million tonnes of CO 2 per year, underscoring a clear transition from planning to a tangible infrastructure project aimed at serving both Eni’s own operations and third-party industrial clients.

Eni Accelerates Net Zero Targets for Scope 1, 2, and 3 Emissions
Eni has set an ambitious target to achieve Net Zero for its Scope 1+2 GHG emissions by 2035, a significant acceleration towards decarbonization. The company also aims for a 50% reduction in Net Intensity across Scope 1+2+3 by 2040, targeting overall Net Zero by 2050.

Aggressive Methane & Flaring Reduction Signals Operational Shift
Eni’s commitment to maintaining zero routine flaring and methane intensity below 0.2% through 2030 demonstrates a proactive stance on reducing potent greenhouse gases. This aggressive approach minimizes environmental liabilities and positions Eni as a leader in operational decarbonization within the energy sector.

(Source: Eni — Sustainable Ships)

$1 B+ in Strategic Deals Powering Eni’s Satellite Financing Model

Eni actively employs a “satellite” financing strategy, where it establishes independent entities for new energy ventures and divests minority stakes to external partners, thereby crystallizing value and raising capital to fund growth without diluting its core balance sheet. This model has been successfully applied to fund its capital-intensive projects in CCUS, biofuels, and even frontier technologies like fusion and lithium, demonstrating a pragmatic approach to financing its energy transition.

Eni’s Frontier Technology Investments

The company is making significant, long-term investments in next-generation energy technologies to secure a first-mover advantage.

• In September 2025, Eni, a strategic investor in Commonwealth Fusion Systems (CFS), signed a power purchase agreement worth over $1 billion for the offtake of power from CFS’s first ARC fusion power plant.
• In July 2026, Eni invested $225 million in Energy X’s “Black Giant” lithium project in Chile, a deal that includes offtake rights for up to 25% of the project’s future output and aims to commercialize Direct Lithium Extraction (DLE) technology.
• In the same month, Eni launched a battery venture with Seri Industrial with a target production capacity of 16 GWh/year, expanding its reach into energy storage systems.

Eni’s Core Transition Project Funding

For its more immediate decarbonization goals, Eni has secured substantial funding through its satellite model and strategic financial partnerships.

• The August 2025 deal with Black Rock’s GIP to take a 49.99% stake in its CCUS business is a prime example of the satellite strategy, raising significant capital to fund the infrastructure’s development.
• A €500 million finance agreement with the European Investment Bank (EIB) in July 2025 was specifically earmarked for the conversion of the Livorno refinery into a biorefinery, directly funding a core pillar of its biofuel strategy.

Table: Eni Strategic Investments and Financing (2025-2026)

Eni’s 8+ Key Partnerships for Global Biofuel and Energy Reach (2024 to 2026)

Eni’s sustainability strategy is heavily dependent on a global and technologically diverse network of partnerships. These collaborations are essential for securing access to new markets, acquiring specialized technology, ensuring sustainable feedstock supply, and sharing the financial burden of large-scale infrastructure projects across its biofuel, renewable, and transitional gas businesses.

Eni’s Biofuel and Low-Carbon Mobility Alliances

To build its biofuel value chain, Eni has formed partnerships across the supply chain, from feedstock to end-users. In the U.S., Eni Sustainable Mobility partnered with PBF Energy in a joint venture for the St. Bernard Biorefinery, expanding its production footprint internationally. To secure market access in Europe, a July 2026 partnership with BMW will supply biofuels for the automotive sector. These deals follow earlier-stage agreements, such as the one with the Government of Kenya to develop sustainable feedstock sources, demonstrating a vertically integrated approach.

Eni’s Renewable and Transitional Energy Collaborations

Beyond biofuels, Eni leverages partners to advance its renewable power and transitional gas portfolio. A January 2024 agreement with Kazakhstan’s Kaz Munay Gas (KMG) to build a hybrid renewable and gas power plant shows its model for markets requiring phased transitions. In February 2025, a tripartite agreement with Masdar and TAQA in the UAE targets renewable energy infrastructure development. To ensure operational integrity, Eni contracted SLB in October 2023 to implement a comprehensive methane emissions monitoring and reporting plan across its global facilities, a critical step for improving environmental transparency.

Table: Eni Strategic Partnerships (2023-2026)

Italy vs. Global Expansion in Eni’s Sustainability Strategy

While Eni’s core decarbonization infrastructure projects for biorefining and CCUS remain anchored in Italy, the company is simultaneously pursuing an aggressive global expansion to secure feedstock, access new markets, and develop transitional energy assets. The period from 2025 onward shows a clear acceleration of this international strategy, moving beyond the domestic focus that characterized its planning phase between 2021 and 2024.

• The 2021-2024 period was dominated by domestic planning, with a focus on laying the groundwork for the conversion of Italian refineries like Gela and Livorno and initiating early-stage feedstock development projects abroad, such as in Kenya.
• From 2025, Eni’s geographic activity has diversified significantly. Italy remains the industrial hub for complex conversions and CCUS development, but growth is now driven by international partnerships.
• In North America, Eni entered the U.S. market through its biofuel joint venture with PBF Energy and signed its first long-term LNG supply agreement with a U.S. producer, Venture Global.
• In Asia and the Middle East, partnerships with state-owned enterprises like KMG in Kazakhstan and Petronas in Indonesia provide access to strategic gas and renewable projects, a model similar to that of competitors like Equinor.
• Activities in Africa continue to advance with the Baleine project in Côte d’Ivoire and the Coral North gas project in Mozambique, positioning gas as a key transitional fuel in its portfolio.

Eni’s Technology Maturation from SAF Pilots to Fusion PPAs

Eni’s technology portfolio is advancing along a clear maturity curve, with established businesses like biorefining now reaching commercial scale, mid-stage ventures like CCUS entering a funded development phase, and frontier technologies like fusion and lithium extraction being secured through strategic, long-term investments. This progression reflects a disciplined approach to managing technology risk while positioning for future energy systems.

• Between 2021 and 2024, Eni’s low-carbon technology efforts were focused on operating its existing biorefineries and piloting initiatives. Biofuel capacity was stable at around 1.1 million tonnes per year, and CCUS remained largely in the conceptual and planning stage.
• The period since January 2025 has been defined by commercial validation and strategic de-risking. In biofuels, the €500 million EIB financing for the Livorno conversion and the partnership with BMW move the business firmly into a commercial growth phase.
• In CCUS, the Black Rock partnership provided the capital and third-party validation necessary to transition the project from a strategic plan to a concrete infrastructure build-out with a scheduled 2028 start date.
• For frontier technologies, Eni is not deploying capital for immediate commercialization but is securing future access. The $1 billion+ PPA with Commonwealth Fusion Systems and the $225 million investment in Energy X’s DLE technology, which includes offtake rights, are strategic plays to secure a leadership position in technologies that could be pivotal post-2030.

SWOT Analysis of Eni’s Sustainability and Transition Strategy

Eni’s strategy exhibits the strengths of a pragmatic incumbent leveraging existing assets and a sophisticated financing model to navigate the energy transition. However, this approach creates inherent weaknesses and threats related to its continued reliance on fossil fuels and the complex execution required to scale multiple new business lines simultaneously.

Table: SWOT Analysis for Eni’s Sustainability Strategy

Eni 2027 Outlook: Scaling Biofuels and Proving the Satellite Model

In the coming year, the critical test for Eni will be to demonstrate tangible construction progress on its flagship biorefinery and CCUS projects while proving its “satellite” financing model is repeatable for funding its ambitious transition. Success will depend on disciplined execution of these capital-intensive builds and the ability to replicate the Black Rock partnership model to attract further investment.

• If this happens: Eni announces another significant minority stake sale in one of its “satellite” ventures, either in its upstream portfolio or another low-carbon business.
• Watch this: The announcement would serve as a powerful validation of its financing strategy, signaling to investors that the model is a sustainable and repeatable mechanism for funding growth without over-leveraging its core business.
• These could be happening: This would likely trigger an upward re-evaluation of Eni’s low-carbon business segments and could attract more specialized infrastructure investors to its assets. Key signals to monitor are construction milestones at the Livorno biorefinery, now fully financed by the EIB, and any pre-commercial offtake agreements for its CCUS services ahead of the 2028 launch. The biofuel business is already gaining commercial momentum with the BMW supply deal, and further agreements with transportation or logistics companies would confirm its market leadership.

The questions your competitors are already asking

This report covers one angle of Eni’s commercial trajectory. The questions that matter most depend on your work.

• Eni biofuel feedstock sources and risks
• Competitor financing for energy transition projects
• European oil refinery conversion to biofuel status
• Major energy company investment in fusion power

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