<article><p class="lead">Italian integrated oil company Eni said today it could speed up domestic refinery conversions to build new hydrotreated vegetable oil (HVO) plants.</p><p>Eni's head of energy evolution Massimo Mondazzi said about biorefineries that "the transformation could be accelerated." The company has previously said it targeted 5mn t/yr of HVO production capacity by 2050. </p><p>Eni cited good results from its existing units — its 350,000 t/yr Venice and 650,000 t/yr Gela plants — and the "significant market we see opening up" of biojet fuel demand in coming years. Mondazzi said Eni would provide a clearer timeframe at its next strategy update at the start of next year.</p><p>Eni stated capital expenditure (capex) costs of around $300-400/t of HVO for its biofuels plants, equating to $105mn-140mn for Venice and $195mn-260mn for Gela.</p><p>The two units use part of the sites of former oil refineries, but the biofuel production is far smaller and remain some way short of nameplate production.</p><p>Eni said Venice and Gela had planned maintenance works in the third quarter, which cut output. Eni said Gela is "still in a ramp-up" phase, while the firm said previously the unit would reach capacity <a href="https://direct.argusmedia.com/newsandanalysis/article/1890280">in the fourth quarter of 2019.</a> </p><p>The firm expects the units to reach 80pc of nameplate capacity in the fourth quarter of this year. Chief executive officer Claudio Descalzi said some units at Gela had started commissioning <a href="https://direct.argusmedia.com/newsandanalysis/article/1848712">as early as February 2019.</a> </p><p>Eni posted lower HVO output in the third quarter, compared with April-June, as a result of the works. Eni produced 151,000t of HVO in the third quarter, up from 85,000t on the year. But output was down from 188,000t in the second quarter. In January-September production was 527,000t up sharply from 185,000t on the year as a result of the <a href="https://direct.argusmedia.com/newsandanalysis/article/1983889">Gela start up.</a></p><p class="bylines">By Adam Porter</p></article>
