Eni (E) said Wednesday it signed a 500 million euro ($580 million) 15-year loan with the European Investment Bank to convert some units of its Sannazzaro de' Burgondi refinery, in Italy's Pavia province, into a biorefinery.

The refinery's hydrocracker unit will be converted and a pre-treatment plant for waste materials like used cooking oils, animal fats and agri-food industry waste will be built, Eni said, adding those materials are the main feedstock used by Enilive, Eni's unit that makes hydrotreated vegetable oil biofuels.

From 2028, the Sannazzaro plant is expected to start producing hydrotreated vegetable oil diesel biofuels and the sustainable aviation fuel biojet, with a production capacity of about 550,000 tonnes a year, Eni said.

The project follows a 500 million euro financing agreement signed in July 2025 to convert the company's Livorno refinery into a biorefinery, Eni said.