Italian energy major Eni's biofuels division Enilive reported a 35% year-over-year increase in adjusted EBIT to Eur233 million ($256 million) in the third quarter of 2025, driven by recovering bio-margins in both European and US markets, according to third-quarter results released Oct. 24.

The strong quarterly performance came as European HVO-UCO spreads averaged $1,143/mt in the third quarter, up 86% from $613/mt in the year-ago quarter, while US renewable diesel spreads softened 45% year over year to $420/mt amid oversupply concerns.

Biorefinery utilization rises

Enilive's bio throughput in the third quarter reached 315,000 mt, up 14% from 277,000 mt in Q3 2024, with average biorefinery utilization rates climbing to 85% from 74%, the company said.

The increase reflected higher processing volumes at the Gela and Chalmette facilities following maintenance activities in the prior-year quarter.

In the first nine months of the year, bio throughput totaled 881,000 mt, down 7% from 952,000 mt in the same period of 2024, due to planned maintenance shutdowns in the first half of the year.

Future projects underway

Eni is accelerating its downstream energy transition strategy, with four major biorefinery projects across Italy, South Korea and Malaysia now in various stages of development, CEO Claudio Descalzi said in a statement.

In July, Eni secured a Eur500 million 15-year financing agreement with the European Investment Bank to support conversion of its Livorno refinery in Tuscany into a biorefinery.

The project includes the construction of a biogenic pre-treatment unit and a 500,000 mt/year Ecofining plant for hydrogenated biofuel production.

Korea SAF plant breaks ground

In August, LG-Eni BioRefining, a joint venture between LG Chem and Enilive, commenced construction of South Korea's first HVO and sustainable aviation fuel production facility in Seoul.

The plant, scheduled for completion in 2027, will process approximately 400,000 mt/year of renewable bio-feedstock, positioning the partnership to capture growing Asian SAF demand.

Sannazzaro, Priolo conversions advance

In September, Eni initiated the authorization process to convert selected units at its Sannazzaro de' Burgondi refinery in Pavia into a biorefinery.

The project will transform the existing hydrocracker (HDC2) unit using Ecofining technology alongside construction of a pre-treatment unit for waste and residues.

The new Sannazzaro biorefinery will have a processing capacity of 550,000 mt/year with flexibility to produce SAF-biojet and HVO diesel, Eni said.

In October, authorization processes began to transform the Priolo hub, which will include a new 500,000 mt/year biorefinery featuring an Ecofining plant, biogenic feedstock pre-treatment unit and hydrogen production facility.

The site will also host a 40,000 mt/year chemical recycling plant based on Versalis' proprietary Hoop technology. Completion is targeted for end-2028.

Outlook maintained

Eni confirmed its full-year outlook for Enilive, projecting pro forma adjusted EBITDA of around Eur1 billion.

The company expects total biorefinery capacity to reach 1.65 million mt/year by year-end, with an additional 1 million mt/year under construction.

The Italian major's aggressive biorefinery expansion comes as the EU's ReFuelEU Aviation mandate requires 2% SAF blending from 2025, rising to 6% by 2030 and 70% by 2050, creating structural demand for low-carbon aviation fuels.

Enilive operates existing biorefineries at Venice-Porto Marghera (capacity undisclosed), Gela in Sicily and Chalmette, Louisiana. The company sources feedstocks including used cooking oil, animal fats and agricultural residues to produce HVO diesel and SAF via the hydroprocessed esters and fatty acids (HEFA) pathway.

Platts, part of S&P Global Commodity Insights, assessed FAME 0 premiums down $37/mt, or 5.38%, day over day at $650.25/mt Oct. 23. In line with the trend, RME premiums settled at $714.75/mt, falling $27.50/mt or 3.7%, day over day.

UCOME premiums saw the biggest decline, falling $46.50/mt, or 5.41%, day over day to $812.25/mt on Oct. 23.