Eni announced plans to invest about $130 million to convert the conventional refinery in Venice to a biofuels plant. The company said the refinery conversion should begin next year. Biofuels production should start by the beginning of 2014.
Eni said the projects "is the first in the world to convert a conventional refinery into bio-refinery."
Bloomberg News calculates the facility processes around 80,000 barrels of crude oil per day.
The European Union has embraced a series of climate and energy targets in a binding resolution. Part of the policy calls for a 20 percent target level for renewable resources in the share of the EU energy consumption mix by 2020.
"The new green plant will maintain the Venice site in an economically sustainable industrial operation over the long term, with low environmental impact," said Eni.