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Europe must avoid replacing its current dependence on imported fossil fuels with new forms of dependency on electricity imports and critical raw materials, according to a new study by Eni and The European House Ambrosetti (TEHA). The report, titled 'Sustainable biofuels as a strategic lever for industrial competitiveness, energy security and decarbonisation', was presented at TEHA's annual Cernobbio Forum and calls for a more pragmatic approach to the energy transition—one that evaluates emissions reductions across the entire life cycle of a fuel rather than only at the point of use.
This approach, the partners argue, would give greater prominence to bio-based products such as HVO (Hydrogenated Vegetable Oil) and SAF (Sustainable Aviation Fuel). These solutions are already commercially available, can diversify energy supplies, reduce greenhouse gas (GHG) emissions across the supply chain, and preserve the industrial capacity and expertise of European countries.
'Europe must avoid repeating the mistakes of the past. A transition that replaces one dependency with another does not strengthen the continent; it merely shifts its vulnerability,' said Valerio De Molli, Managing Partner and CEO of TEHA Group. 'Biofuels represent a concrete lever for the decarbonisation of transport, as well as for diversification, security and industrial policy. We need to move beyond a predominantly regulatory approach and adopt a more pragmatic, industry-led vision that takes account of new geopolitical risks.'
Stefano Ballista, CEO of Enilive, added: 'One of the main challenges facing Europe is to reconcile the energy transition with industrial competitiveness and economic and social sustainability. Biofuels represent an immediately available solution for reducing emissions from the transport sector throughout the entire supply chain, as they are widely available, can be distributed using existing infrastructure and are compatible with the majority of diesel engines currently in use. Biofuels are a complementary solution to other energy sources, which also helps to strengthen both energy security and European industrial competitiveness. Eni's experience demonstrates how technological innovation, combined with the development of industrial and professional expertise, can drive transformation processes capable of generating value, employment and sustainable development, whilst supporting Europe's competitiveness.'
To underscore the risks of excessive reliance on energy imports, the report cited Europe's refining sector as a cautionary example. Since 2009, the continent has lost 21% of its refining production capacity and now has limited ability to meet domestic demand, particularly for diesel and jet fuel, where import dependence has grown sharply. The contraction is estimated to have cost the sector between 90,000 and 130,000 skilled jobs. The vulnerability is even more acute in critical raw materials, with 100% of the EU's refined heavy rare earth elements sourced from China.
The report also warned that the rapid expansion of digital technologies and artificial intelligence will nearly triple the electricity demand of European data centres, from 96 TWh in 2024 to 236 TWh by 2035. The authors therefore recommend easing competition for electricity by deploying each technology where it delivers the greatest benefit. In mobility, biofuels can deliver immediate emissions reductions in hard-to-abate sectors such as heavy goods transport, aviation and shipping, while freeing up electricity for strategic uses such as data centres and AI infrastructure. A technology-neutral mobility policy, the report argues, would allow a greater share of electricity to be directed to these strategic priorities.
The study also sets out to dispel what it calls 'false myths' surrounding biofuels, highlighting three key factors. First, biofuels can deliver immediate GHG reductions in transport: HVO can be used in pure form in many land and maritime vehicles, while SAF can be blended up to 50% with fossil jet fuel and is compatible with a large share of the European vehicle fleet. Second, investments in biorefineries represent an industrial and social opportunity, as demonstrated by Eni's conversions at Porto Marghera in 2014 and at Gela in 2019. Third, new agricultural supply chains for biofuel production can complement food production by focusing on catch crops, alongside the use of waste and waste-derived raw materials.
To maximize biofuels' contribution to European decarbonization and energy security, Eni and TEHA recommend a series of policy measures: assess emissions reductions across the full life cycle of fuels; encourage the conversion of existing refineries into biorefineries while preserving production capacity and industrial know-how; and adopt a more pragmatic stance on agricultural feedstocks, which can be managed efficiently without competing with food production.
Source: HydroNews