ENI S.P.A ENILIVE
Market Presentation
MAY 2024
A ROBUST MACRO FOR RD/SAF MARKET
LONG-TERM PERSPECTIVES DRIVEN BY HARD-TO-ABATE SECTOR DECARBONISATION
WORLD RENEWABLE DIESEL/SAF DEMAND | Mton/y
N. AMERICA | EUROPE | |||||||||||||||||||||
RD | SAF | 46 | RD | SAF | 40 | |||||||||||||||||
35 | ||||||||||||||||||||||
30 | ||||||||||||||||||||||
20 | 16 | |||||||||||||||||||||
15 | ||||||||||||||||||||||
5 | 4 | 7 | ||||||||||||||||||||
2022 | 2025 | 2030 | 2040 | 2050 | 2022 | 2025 | 2030 | 2040 | 2050 |
CAGR 2022-2050
+25%
SAF
AVIATION
SAF the leading pathway and «the biggest contributor to aviation decarbonisation» IATA Chief
SECTORS
ENILIVE TARGET MARKETS
~90%
of 2022-2050 additional
biofuel demand
TRANSPORTATION
ACCOUNTING FOR ~1/4 OF
GLOBAL CO2 EMISSIONS
ASIA PACIFIC | WORLD | 130 | |||||||||||||||||||||||
RD | SAF | 35 | RD | SAF | 83 | ||||||||||||||||||||
15 | 45 | ||||||||||||||||||||||||
1 | 6 | 22 | |||||||||||||||||||||||
2022 | 2025 | 2030 | 2040 | 2050 | |||||||||||||||||||||
2022 | 2025 | 2030 | 2040 | 2050 | |||||||||||||||||||||
+5%
RENEWABLEDIESEL
FREIGHT, MARINE, RAIL, HEATING, OTHERS
HARD TO ABATE
RD & SAF CAN DECARBONISE TRANSPORTATION WITHIN CURRENT INFRASTRUCTURE
TECHNOLOGIES OTHER THAN
HVO/HEFA (e.g. E-FUEL)
POSSIBLY COST COMPETITIVE
ONLY FROM 2040 ON IN CASE OF SIGNIFICANT COST DECREASES
Source: Eni elaborations on data from third parties
2
POLICY SUPPORT CUSTOMERS' DEMAND
FRAMEWORK FURTHER UNDERPINNED BY VOLUNTARY DEMAND
IN PLACE
PROPOSED
UK - Jet Zero Strategy
10% SAF 2030, 22% 2040
US - SAF Grand Challenge
3 bn gal 2030, 100% 2050
Brazil - Future Fuel
SAF Mandate: -10% GHG emission by 2037
RD: blending to be defined
N. Zealand - SAF mandate
7.5% SAF 2030, 50% 2050
India - SAF Mandate
1% SAF 2025 domestic airlines
Eco-Friendly Biofuel
Measures
8% biodiesel/HVO road
2030
SAF targets from 2026
Japan SAF mandate
10% SAF 2030
Thailand SAF mandate
1% SAF 2026
Malaysia SAF mandate
SAF 1% 2026, 47% 2050
Singapore SAF mandate
SAF 1% 2026, 3-5% 2030
3
LEADING INTERNATIONAL SET A SAF UTILIZATION
TARGET AT 10% VS 6% OF REFUELEU
80+ airlines offtake deals signed
World ICAO Corsia SAF program
2024-2026 1° Phase (voluntary)
2027-2035 2° Phase (binding)
Carbon neutral growth (2019 level)
Clean Fuel Regulations -15%Fuel Carbon intensity 2030
B.C. LCFS -30%Fuel Carbon intensity 2030
Renewable Fuel Standard (RFS2)
Annual volume obligations and D4 RINs
Blender Tax Credit (BTC)
1 $/gal RD / 1.25-1.75 $/gal SAF
Clean Fuel Production Credit (CFPC) (from 2025) up to 1 $/gal RD / 1.75 $/gal SAF
Low Carbon Fuel Standards (LCFS)
-20% Fuel Carbon intensity 2030 California -20% Fuel Carbon intensity 2030 Oregon -20% Fuel Carbon intensity 2034 Washington -20% Fuel Carbon intensity 2030 New Mexico
UAE National Biofuel Policy (waiting for details)
Indonesia
5% SAF 2025 (dom. airlines)
35% biodiesel from 2023
Norway 17% biofuels 2023, 30% SAF 2030
Italy - Pure biofuels mandate
300 kton 2023, 1 Mton 2030
RED III directive
29% renewable fuels in transport 2030
Refuel EU aviation SAF 2% 2025, 6% 2030, 70% 2050
Fuel UE Maritime
-6% Carbon Intesity 2030 -80% Carbon Intesity GHG 2050
+ single countries regulations
ENILIVE DISTINCTIVE ELEMENTS
INVESTING IN OUR STRENGTHS TO DRIVE BUSINESS AND EARNINGS GROWTH
SIGNIFICANT GROWTH IN EBITDA GENERATION
4
FIRST MOVER INTO
BIOREFINERY CONVERSION
STRONG TECHNOLOGY
INNOVATION CAPABILITIES
GLOBAL FOOTPRINT ON BIOFUEL MARKET
AGRI-HUBS
VERTICAL INTEGRATION
VERTICAL INTEGRATION
WITH DOWNSTREAM
BEING PART
OF "ENI WORLD"
3rd largest HVO/SAF operator in the world, 2nd in Europe and 1st among energy majors
Almost 10 years of successful biorefining operations and conversion track record
Co-developer for innovative Ecofining™ process
Continous improvement through ongoing joint collaboration with UOP.
SAF production boost. Supply flexibility (pre-treatment enhancements)
Global presence with distinctive supply, extensive trading
and commercial capabilities as opposite to a more localised traditional R&M business
Upstream vertical integration with equity feedstock through
Agri-hubs providing higher control vs market through direct access to derisked, traceable feedstock
Downstream vertical integration leveraging on:
- wholesale/retail (5.300 stations) and chemicals (Versalis) as captive outlets for bioproducts, stabilizing margins
- globalisation of the bioproducts market, thanks to the expansion of the biorefining system (North America, Asia)
Eni global energy player with diversified geographic scope (60+ countries), diversified presence in the energy value chain
(e.g. chemicals, CCUS, e-mobility, H2). Significant R&D and strategic agreements in place
SIGNIFICANT BIOREFINING GROWTH
MAINTAINING WORLD-CLASS LEADERSHIP IN BIOREFINING
EXPANDING CAPACITY | UNIQUE ADVANTAGED | PRODUCT | OPTIMISED CAPEX & SCHEDULE |
Strengthening Europe | FEEDSTOCK STRATEGY | DIVERSIFICATION | FOR CAPACITY AND SAF |
Accelerating SAF optionality | OPTIONALITY GROWTH | ||
Expanding Far East | Secure agri-feedstock access | ||
New developments in N. America | Pre-treatment flexibility |
AGRIFEEDSTOCK | |||||||||
BIO CAPACITY EVOLUTION | MTON/Y | >5 | ||||||||
700 KTON/Y BY 2027 | |||||||||
CAGR 2023-30~20% | SECURING >35% ITALIAN | ||||||||
SAF OPTIONALITY | THROUGHPUTS | ||||||||
>3 | SAF OPTIONALITY | ||||||||
>1 MTON MOVED FORWARD TO 2026 | |||||||||
(VS PREVIOUS 2030) | |||||||||
1.6 | 1.6 | Up to 2 | DOUBLING BY 2030 | ||||||
Mton | |||||||||
>1 Mton | SAF | ||||||||
SAF | |||||||||
2023 | Gela | Venezia | Livorno | Other project | Pengerang | Daesan | 2026 | Other | 2030 |
2024 | IIH '25 | '26 | under | '26 | '26 | projects | |||
5 | evaluation | ||||||||
ECOFINING: ENABLER OF TRANSFORMATION
KEY PROPRIETARY TECHNOLOGY AT THE HEART OF OUR BIOREFINING
FLEXIBLE PROCESS - MULTIPLE FEEDSTOCKS - QUALITY ENSURED
- Ecofining, thanks to hydrogen, completely removes oxygen from organic feedstocks to obtain HVO*
- HVO is a high-quality biofuel with high conversion yields
- No blending walls required, allowing higher energy content and better performance than FAME
STAGE 1 | Hydrogeoxygenation | STAGE 2 | Isomerization | STAGE 3 | Fractionation | ||||
Oxygen is removed from the | From linear to branched HC chains | The HVO is split into various | |||||||
biomasses. | to improve HVO cold properties | products (Diesel, Jet, Naphta, …) |
A COMMERCIALY PROVEN, RELIABLE TECHNOLOGY
2006 | 2007 | 2014 | 2019 | 2023 | 2024-26 | ||
Cooperation | Licensing started to | Venice conversion: | Gela conversion: an | Chalmette | Building new plants | ||
agreement signed | develop Ecofining | the first in the world | example of | commencing | in Livorno and | ||
with Honeywell UOP | at Eni Research | to be converted | continuously | operations | evaluating projects | ||
Centre | into a biorefinery | evolving industrial | deploying Ecofining | in Pengerang and | |||
site | technology | Daesan |
MAKES ENILIVE
"PARTNER OF CHOICE"
OFFERING OPPORTUNITIES FOR
JV/PARTNERSHIPS WITH
OTHER PLAYERS
~30% MARKET SHARE
IN HVO/HEFA GLOBAL CAPACITY
OFFERS INTELLIGENCE
ON NEW MARKET PROJECTS
CONTINUOUS IMPROVEMENT
ONGOING R&D AND ENHANCEMENT
TO THE TECHNOLOGY
6 *Hydrogenated Vegetable Oil
HVO/HEFA SUSTAINABLE FEEDSTOCK AVAILABILITY
NOVEL VEGETABLE OILS SUPPORT THE RISING BIOFUELS DEMAND
POTENTIAL HVO/HEFA SUSTAINABLE FEEDSTOCK AVAILABILITY 2050 | MTON/Y
NOVEL VEGETABLE OILS
FIRST
MOVER
200+
LEADING
POSITION
WASTES | COVER | NON-FOOD CROPS | AGRICULTURAL |
AND RESIDUES | CROPS | DEGRADED LAND | RESIDUES* |
7 (*) = Amount of agricultural residue usable for the production of HEFA, with a potential upside of up to 660 Mton/y through the use of other technologies
Source: Eni elaborations and Mckinsey Clean skies for tomorrow
AGRI FEEDSTOCK VERTICAL INTEGRATION
DISTINGUISHING MODEL BASED ON AGRICULTURE AND RESIDUES VALORIZATION WITH WIDE AND DIVERSIFIED PORTFOLIO
OF COUNTRIES AND FEEDSTOCK
KEY FEATURES | |
SECURITY OF SUPPLY | 700kt+ in 2027, >1Mt in 2030 |
COMPETITIVE COST | 20-30% saving vs market benchmark cost of feedstock in 2027 |
LOW CARBON FOOPRINT | Feedstock with low GHG profile, with target of carbon neutral/carbon negative |
EU RED III
ANNEX IX REVISION UPSIDE
NON FOOD | INTERMEDIATE |
CROPS ON SEVERLY | |
CROPS | |
DEGRADED LANDS | |
QUALITY | > 85% of total feedstock eligible for SAF production (EU RED III) |
EFFECTIVE CAPEX DISCIPLINE
AGRI-FEEDSTOCK PRODUCTION | ||||||
>1 mt | ||||||
>700kt | ||||||
FIRST | ||||||
CARGO | CAGR > 100% | |||||
FROM KENYA | ||||||
OCT 2022 | ||||||
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2030 |
3 | > 10 | > 20 | NUMBER OF | |||
FEEDSTOCK | ||||||
8
2027
PRODUCTION
- 1 million tons animal feed and fertilizers
FARMERS
- 700 thousand families of farmers involved with opportunity for long term, stable additional revenues
CULTIVATED LAND
- 1 million hectares regenerated and valorized
LEVERAGING ON MODEL
FLEXIBILITY
(AGRI HUB vs TOLLING)
AGRI-HUB UNIT DEVELOPMENT
CAPITAL COST ~1 $M/kton
(as of 2030)
-20-30%
vs UCO/FEEDSTOCK FOR SAF ENCHMARK BY 2027
SAF OPTIONALITY: ACCELERATED TARGET
FOCUS ON HIGH-VALUE ADDED PRODUCTS OPTIONALITY IN A FLEXIBLE PRODUCTION SYSTEM
Arctic diesel
from 2024
HVO DIESEL
Pure HVO already available in 640+
retail stations
Invested to improve cold properties to target other markets (e.g. Northern
Europe)
Partnerships to target new or niche markets (e.g. ships, rail, diesel power gens, data centers)
HVO NAPHTHA
Integration with Versalis crackers and JV with international chemical partners
Gasoline blending optionality
Auto consumption optionality to improve product GHG saving
HVO-LPG
Gasoline blending optionality
Auto consumption optionality to improve product GHG saving
New ongoing development
SAF
SAF | |
industrial | |
SAF | integration |
co-processing | bionaphtha |
0.5% UCO in | fractioned in |
Taranto (2021) | Livorno (2022) |
SAF | |
SAF | direct |
production | |
direct | planned boost |
production | |
Gela/Venice | |
from 2024-25 |
2026 SAF optionality
2030 SAF optionality
Up to 2mmt/y
9
1.0mmt/y
MARKETING & TRADING
DOWNSTREAM INTEGRATION AND TRADING TO SUPPORT BIOFUELS
GLOBAL FOOTPRINT IN FEEDSTOCK SOURCING | ENILIVE STATION AS A GROWING HVO OUTLET* |
Venice
ChalmetteLivorno
Gela | Daesan |
Biorefineries (existing)
5,267
Total number
of stations
527 | |
157 | 325 |
265 |
17 | 3,976 |
Biorefineries (planned)
Pengerang
# of stations
Feedstock flows | |||||
Product flows | |||||
Storage capacity | SIGNIFICANT | ||||
Agri-hubs1 | AGRI-HUBS | "BULKING UP" | BLENDING | LOGISTIC | QUALITY |
EQUITY | FEEDSTOCK | FEEDSTOCKS | FLEXIBILITY | MONITORING | |
Trading offices | FEEDSTOCK | SOURCING | CHECKS | ||
CAPACITY | |||||
of 0.7mmt/y+ | 250+ suppliers | of different | achieved | on feedstocks | |
with a total | |||||
by 2026 and | qualities in | through tanks | to support | ||
capacity | |||||
1mmt/y+ by | tanks to | of different | blending | ||
beyond | |||||
2030 | optimize flows | sizes and types | opportunities | ||
7.0mmt/y+ | |||||
10 * Service stations figure as of year end 2023.
54 stations in brand licensing
15 stations | 15 stations | 24 stations | ||
in Egypt | in Cyprus | in Corsica | ||
PRODUCT | # OF STATIONS | # OF STATIONS | GEOGRAPHICAL | |
2023 | 2024 | PRESENCE | ||
HVO | 641 | >1.000 | ||
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Eni S.p.A. published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 12:46:00 UTC.
