Petronas, in collaboration with the Eni and Euglena, has awarded a key contract to Maire’s NextChem for the delivery of a hydrogen production unit (HPU) at its upcoming biorefinery in southern Peninsular Malaysia. This $125 million contract represents a significant step in the joint venture’s efforts to produce sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO), and bionaphtha at a new grassroots facility located in Johor’s Pengerang Integrated Complex (PIC).

NextChem’s proprietary NX Reform technology will power the hydrogen production unit, enabling the biorefinery to generate low-carbon hydrogen. This hydrogen will play a crucial role in supporting the facility’s conversion processes, minimizing emissions while maximizing recovery rates. The hydrogen unit will help the joint venture meet its sustainability goals and advance the transition to low-carbon fuels, responding to the growing global demand for cleaner aviation and mostly focusing on the transportation alternatives.

The biorefinery, slated for construction by 2028, will be integrated with Petronas’ existing refinery and petrochemical complex in the PIC. It will use Eni-Honeywell UOP’s Ecofining technology to process a wide array of biofeedstocks, including waste oils, animal fats, and vegetable oil residues. This flexible approach allows the biorefinery to efficiently handle both regional and international feedstocks, optimizing production and providing greater flexibility in fuel production.

This contract follows a recent preliminary agreement with Samsung E&A Co. Ltd., which will serve as the main engineering contractor for the facility. The joint venture, led by Petronas Mobility Lestari (PMLSB), Eni’s Enilive, and Euglena, aims to produce large volumes of SAF and HVO to address the rising demand for sustainable, low-carbon fuels in the aviation and transportation sectors. Euglena is also focusing on microalgae oils, accelerating its research to supply algae-based oils for the biorefinery project.

With the final investment decision approved in mid-2024, the project is expected to begin operations by 2028. The new biorefinery will play a vital role in the global transition to sustainable energy. By producing SAF, HVO, and bionaphtha, it will help reduce the carbon footprint of crucial industries, particularly aviation, which is seeking cleaner fuel alternatives. The biorefinery’s advanced technology and its ability to process a wide range of feedstocks will position the joint venture as a key player in the market for reduced-carbon fuels, contributing to the global effort to address climate change and meet increasing energy demands.