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NewsOils and Fats Sector Coverage

Biofuels Emerge as a Strategic Pillar for European Energy Security and Industrial Competitiveness

Fats and oils processing
October 12, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Biofuels produced from renewable feedstocks are no longer a future prospect but a ready-to-deploy solution for Europe’s green transition and energy diversification. This is the central conclusion of the strategic study 'Sustainable biofuels as a strategic lever for industrial competitiveness, energy security and decarbonisation,' conducted by the TEHA Group in partnership with Eni and unveiled at the Cernobbio Forum on September 5. The report argues that fuels such as Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) are concrete tools for decarbonizing transport while safeguarding European industry.

A pivotal finding of the TEHA-Eni study highlights that over 170 million diesel vehicles currently on European roads—representing approximately 60 percent of the total fleet—are compatible with pure biofuels without requiring engine or distribution network modifications, provided the engines are validated. This compatibility extends to the maritime sector, where HVO can be used in its pure form, and aviation, where SAF blends of up to 50 percent are already permitted. These 'hard-to-abate' sectors, where electrification faces significant technical hurdles, stand as primary beneficiaries of biofuel adoption.

Regarding environmental impact, the study challenges the current EU focus on tailpipe emissions. While electric vehicles are classified as zero-emission at the tailpipe, a full life-cycle assessment by the International Council on Clean Transportation (ICCT) shows they reduce emissions by 73–78 percent compared to fossil fuels. Biofuels derived from renewable feedstocks offer a comparable or superior reduction of 73 percent to 93 percent over their entire life cycle. Enilive, which operates biorefineries in Venice and Gela, projects that its HVO will achieve an average CO2 equivalent reduction of 79.5 percent by 2025 across the entire value chain.

The industrial argument for biofuels is equally compelling. Since 2009, Europe has shed roughly 20 percent of its refining capacity, resulting in the loss of up to 130,000 skilled jobs. Converting these fossil-fuel plants into biorefineries is proposed as a vital alternative to decommissioning. Eni’s successful conversions in Porto Marghera and Gela serve as blueprints; the Gela site alone demonstrates an economic multiplier of at least 2.5 times for every euro invested. Italy has subsequently become a leading European hub for 'drop-in' biofuels like HVO and SAF.

Economic projections by the TEHA Group suggest that private investment in European biorefining could contribute up to 66 billion euros to GDP and sustain over 33,000 jobs. The study warns that focusing solely on electric mobility—which received 49 billion euros in public funds between 2016 and 2030—may shift Europe’s dependence from oil to new technological dependencies, particularly on China. To mitigate this, the study emphasizes a diverse raw material strategy involving waste, residues like used cooking oil, and animal fats, alongside intermediate crops grown on degraded land. Eni is currently piloting this model in Africa, aiming to engage over a million farmers by the next decade. Ultimately, the transition requires a technology-neutral approach that utilizes all mature solutions, including biofuels, to meet global demand and industrial policy goals.

Source: Il Sole 24 ORE