Petronas, Eni team up to develop renewable motorsport fuel

Eni and Petronas have signed a feasibility agreement to develop high-performance bio-gasoline from renewable feedstocks, a move that could open new commercial pathways for sustainable road fuels if the motorsport application proves technically and economically viable.

The agreement, signed on the sidelines of the 2026 Formula 1 Italian Grand Prix in San Donato Milanese, will leverage Eni's proprietary Ecofining technology, the same process the Italian energy major has used to produce hydrotreated vegetable oil biofuels since 2014, to assess whether a commercially scalable bio-gasoline can be produced from renewable raw materials for use first in motorsport and later in broader consumer markets.

The deal adds a new dimension to the two companies' existing biofuels cooperation and could have significant implications for renewable gasoline trade flows, particularly in Europe and Southeast Asia, where both firms have established refining and distribution infrastructure.

Biorefinery ambitions

The agreement tasks both companies with evaluating the technical, market, and sustainability profiles of the proposed bio-gasoline, as well as its performance characteristics under motorsport conditions.

Eni will draw on its Eni biorefinery operations, which already produce commercially available HVO diesel and sustainable aviation fuel, while Petronas will contribute its fuel technology expertise spanning fossil-based and high-performance sustainable fuels for combustion engines, according to the companies' joint statement.

The partnership builds on a deepening bilateral relationship.

The two companies recently established Searah, a 50:50 joint venture combining gas production and development assets across 19 blocks in Indonesia and Malaysia. In the biofuels space specifically, Petronas has joined Eni and Japan's Euglena to form Pengerang Biorefinery, a joint venture developing a biorefinery at Pengerang in Johor, Malaysia.

That facility is expected to reach processing capacity of up to 650,000 metric tons of renewable feedstocks per year by the second half of 2028, producing SAF, HVO diesel and bio-naphtha, according to the statement.

The Pengerang project positions the partnership as a significant future supplier of renewable distillates into Asian markets, where demand for low-carbon transport fuels is growing under tightening regulatory frameworks.

Eni currently distributes HVO diesel at more than 1,700 service stations across Europe, giving the partnership an established retail channel through which any future commercial bio-gasoline product could be introduced to market, according to the statement.

The motorsport-to-road pathway mirrors strategies already adopted by other fuel developers in the Formula 1 ecosystem, where the sport's governing body has mandated a shift to fully sustainable fuels.

A successful demonstration in high-performance racing conditions could accelerate regulatory and consumer acceptance of bio-gasoline as a drop-in replacement for conventional petrol, with potential to reshape blending demand across European and Asian refining markets.

Platts, part of S&P Global Energy, assessed Sustainable Aviation Fuel HEFA-SPK FOB Straits, reflecting CORSIA-certified cargoes, at $2,550/mt on Sept. 7, down $10/mt from Sept. 4, below offers heard on the day.