Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A (subsidiary of Eni S.p.A.), and Euglena Co., Ltd. (Euglena) have jointly reached the final investment decision (FID) to develop a biorefinery. This cutting-edge facility will be situated within PETRONAS’ Pengerang Integrated Complex (PIC) in Johor, Malaysia. The biorefinery aims to advance sustainable energy production by utilizing innovative technologies and renewable feedstocks, reinforcing the partners' commitment to environmental stewardship and sustainable development in the energy sector.

The three companies will form a joint venture in Malaysia to construct and operate the biorefinery, with PETRONAS Mobility Lestari Sdn Bhd (PMLSB), a subsidiary of PETRONAS, and Enilive as the largest shareholders. This joint venture will leverage the strengths and expertise of each partner to ensure the successful development and operation of the biorefinery, aiming to produce sustainable energy solutions and drive innovation in the renewable energy sector. The collaboration underscores their shared commitment to advancing green technologies and sustainable practices.

Targeted to be operational by the second half of 2028, the biorefinery will produce Sustainable Aviation Fuel (SAF) and other biofuels, including Renewable Diesel/Hydrogenated Vegetable Oil (HVO), to meet the growing demands of the global aviation and transportation industries. Leveraging each partner's expertise, the biorefinery will cater to these sectors' increasing need for sustainable energy solutions. Construction is set to begin in the fourth quarter of this year, and upon completion, the facility will have the capacity to process approximately 650,000 tonnes of raw materials annually to produce SAF, HVO, and bio-naphtha.

The biorefinery will utilize waste and residue feedstocks such as used vegetable oils, animal fats, and waste from vegetable oil processing, with plans to explore microalgae oils in the mid-term. Strategically located within PETRONAS' Pengerang Integrated Complex (PIC), the facility will benefit from integrated facilities and utilities, ensuring proximity to feedstock sources. Additionally, its location provides easy access to major international shipping lanes, enhancing its capability to efficiently meet global customer needs for SAF, Renewable Diesel/Hydrogenated Vegetable Oil (HVO), and bio-naphtha.

The purpose-built biorefinery is designed for full flexibility in processing various feedstocks, utilizing state-of-the-art Ecofining™ technology developed by Eni in cooperation with Honeywell UOP, along with a pre-treating unit. This advanced configuration allows the facility to maximize the production of SAF for aircraft, as well as Renewable Diesel/Hydrogenated Vegetable Oil (HVO). By accommodating diverse feedstocks and optimizing product output, the biorefinery aims to meet the growing demands of the aviation and transportation industries for sustainable fuel solutions.

Ahmad Adly Alias, Vice President of Refining, Trading, and Marketing at PETRONAS, highlighted that this milestone will enhance PETRONAS' role in the biofuels value chain, extending beyond trading to establish a comprehensive bio-based ecosystem. This initiative aims to provide a sustainable solution for reducing carbon footprints. By leveraging the strengths and expertise of their partners, PETRONAS is well-positioned to drive progress in the global bio-based economy and deliver affordable, accessible cleaner energy solutions, particularly in the Asia Pacific region. This aligns with their aspiration to achieve Net Zero Carbon Emissions by 2050.

Enilive’s Chief Executive Officer, Stefano Ballista, expressed that the final investment decision on the biorefinery project in Malaysia signifies Enilive's dedication to creating value in the biofuel business. This step is crucial for achieving their 2030 targets of exceeding 5 million tonnes per year in biorefining capacity and up to 2 million tonnes per year in Sustainable Aviation Fuel (SAF) options. Enilive has been operating biorefineries in Italy since 2014 and more recently in the United States. This new initiative, in collaboration with PETRONAS and Euglena, will enable Enilive to enter the Asian market and establish a unique global presence.

Euglena Co., Ltd.’s Founder and President, Mitsuru Izumo, emphasized the pioneering role of Euglena in advancing biofuel technology. He highlighted the company’s mission to boldly embark on initiatives that no other Japanese firm has attempted, citing their establishment of Japan’s first small-scale biofuel production facility as a testament to their commitment. Izumo expressed enthusiasm for the Malaysia project, which aims to contribute to a carbon-neutral society and support Japan’s biofuel goals.