European oil refineries are accelerating investment in green energy projects to stay competitive amid tightening regulation and rising cleaner fuel demand. According to Reuters reporting, firms like Essar and PKN Orlen are expanding into blue hydrogen, co-processing, and SAF (Sustainable Aviation Fuel) production, often with government backing.

Essar is planning a new blue hydrogen plant in the UK and has secured support for a SAF facility at its Stanlow site. Meanwhile, PKN Orlen is scaling its co-processing and biofuel capabilities in Poland to align with EU mandates like RefuelEU Aviation and FuelEU Maritime.

Refinery leaders noted that regulatory frameworks are no longer just constraints but drivers of investment, shaping business models around emission targets and long-term viability. Some warn that if domestic capacity doesn’t adapt, European nations may become overly dependent on refined fuel imports — already accounting for ~30% of demand in some regions