Energy Transition in Italy: Strategic Opportunities in Eni and Saipem

Italy’s energy transition is accelerating, driven by ambitious decarbonization targets and strategic collaborations between industry leaders. Eni and Saipem, two pillars of the Italian energy sector, are redefining their roles through biorefining innovations, floating wind projects, and financial partnerships that align with global net-zero goals. For investors, these initiatives represent a compelling case study in long-term value creation through energy diversification and renewable integration.

Biorefining: A Cornerstone of Decarbonization

Eni and Saipem’s joint focus on biorefining underscores their commitment to reducing carbon intensity while expanding renewable fuel production. The €155 million expansion of Enilive’s Porto Marghera biorefinery, awarded to Saipem, will increase its capacity from 400,000 to 600,000 tonnes per year and introduce sustainable aviation fuel (SAF) production by 2027 [1]. This project is part of a broader strategy to convert Eni’s traditional refineries into biorefineries, with the Livorno refinery slated for a 500,000-tonne biogenic feedstock capacity using Ecofining™ technology [3]. These upgrades are critical to Eni’s goal of scaling biorefining capacity to 5 million tonnes annually by 2030, a target that positions the company to meet Europe’s growing demand for low-carbon fuels [4].

The financial backing for these projects further strengthens their viability. A €500 million finance agreement with the European Investment Bank (EIB) supports the Livorno conversion, demonstrating institutional confidence in Eni’s decarbonization roadmap [5]. Such partnerships not only mitigate capital risks but also align with regulatory incentives, such as the Fer2 Decree, which prioritizes innovative renewable technologies [2].

Renewable Energy Diversification: Floating Wind and Beyond

Beyond biorefining, Eni and Saipem are leveraging their technical expertise to pioneer floating wind energy in Italy. Their collaboration with Divento on the 7 Seas Med (252 MW) and Ichnusa Wind Power (504 MW) projects highlights their strategic pivot toward offshore renewables [2]. These projects, utilizing Saipem’s STAR 1 floating wind technology, are designed to meet the Fer2 Decree’s auction criteria, which aims to accelerate Italy’s renewable energy transition [1]. By combining Eni’s energy infrastructure with Saipem’s engineering capabilities, the partnership addresses technical challenges in deep-water wind farms, a sector with significant growth potential in the Mediterranean.

The integration of floating wind into Eni’s portfolio also diversifies its revenue streams. With Italy targeting 60 GW of renewable capacity by 2050 [4], Eni’s early mover advantage in floating wind could yield long-term returns as global demand for clean energy surges.

Long-Term Value Creation: Strategic Alignment and Financial Resilience

Eni’s 2025–2028 strategic plan, which includes expanding renewable energy capacity to 10 GW by 2028 and 60 GW by 2050 [4], is underpinned by subsidiaries like Plenitude and Enilive. These entities not only support biorefining but also enable cross-sector synergies, such as using biogenic feedstocks for SAF production and integrating renewable electricity into refining processes. For investors, this holistic approach reduces operational costs and enhances resilience against fossil fuel price volatility.

Saipem’s role as a key contractor in Eni’s energy transition projects also offers growth opportunities. The €155 million Porto Marghera contract and the €500 million Livorno project highlight Saipem’s value as a partner in decarbonizing legacy infrastructure. With Eni’s biorefining capacity expected to grow sixfold by 2030 [1], Saipem’s engineering and procurement expertise is likely to remain in high demand, ensuring steady revenue streams.

Conclusion: A Model for Sustainable Investment

Eni and Saipem’s strategic investments in biorefining and floating wind exemplify how traditional energy firms can adapt to a low-carbon future. By aligning with regulatory frameworks, securing institutional financing, and leveraging technological innovation, they are creating a diversified portfolio that balances short-term profitability with long-term sustainability. For investors, these initiatives offer a blueprint for capitalizing on Italy’s energy transition while mitigating climate-related risks.

As the global energy landscape evolves, the success of Eni and Saipem’s collaboration will hinge on their ability to scale these projects efficiently and maintain technological leadership. However, with clear milestones, robust financial backing, and a shared vision for decarbonization, their partnership represents a compelling opportunity for those seeking to invest in the future of energy.

Source:
[1] Eni and Saipem extend collaboration agreement in biorefining [https://www.eni.com/en-IT/media/press-release/2025/03/pr-eni-saipem-extend-collaboration-agreement-in-biorefining.html]
[2] Saipem and Divento sign collaboration agreement for floating wind in Italy [https://www.saipem.com/en/media/press-releases/2025-03-05/saipem-and-divento-sign-collaboration-agreement-floating-wind-italy]
[3] Eni advances Venice biorefinery expansion [https://www.ogj.com/refining-processing/refining/optimization/article/55299037/eni-advances-venice-biorefinery-expansion]
[4] Italy's Energy Transition and Financial Sector Dynamics in August 2025 [https://www.ainvest.com/news/italy-energy-transition-financial-sector-dynamics-august-2025-strategic-insights-investors-2508/]