KUALA LUMPUR (Nov 10): Malaysia’s national oil-and-gas company Petroliam Nasional Bhd (Petronas) is targeting the biorefinery plant in Pengerang, Johor to commence operations by the second half of 2028, in line with schedule.
The Pengerang Biorefinery is being developed by Pengerang Biorefinery Sdn Bhd, a joint venture between Petronas, Enilive SpA — a unit of Italian oil supermajor Eni SpA, and Japanese biotech firm Euglena Co Ltd. The project was previously reported to have a development cost of over RM6 billion.
“The biorefinery will have a processing capacity of up to 650,000 tonnes of renewable feedstock annually, and is projected to produce sustainable aviation fuel (SAF), hydrogenated vegetable oil (HVO), and bio-naphtha, to cater to the growing demands for cleaner energy solutions,“ the companies said in a joint statement on Monday.
The feedstocks will include waste and residue-based materials, such as used vegetable oils, animal fats, and by-products from vegetable oil processing, it added.
Petronas executive vice-president and chief executive officer of downstream Datuk Sazali Hamzah said the groundbreaking of the Pengerang Biorefinery on Monday reflects the oil majors’ collective efforts to drive decarbonisation and advance energy transition in the region.
“Leveraging the synergy and strength of our partnership, the new biorefinery is one of Petronas’ key initiatives to deliver on our energy transition strategy through a holistic bio-based value chain, and an expanded suite of cleaner energy solutions,” he said.
Enilive CEO Stefano Ballista added that the partnership with Petronas and Euglena will “accelerate the decarbonisation of transportation and reaffirm Enilive’s commitment to sustainable products”.
Meanwhile, Euglena founder and president Mitsuru Izumo said the project marks a “powerful step towards decarbonisation and a more sustainable future,” and demonstrates strong collaboration among partners across the region.
Located within the Pengerang Integrated Complex (PIC) in Johor, the biorefinery’s proximity to major international shipping lanes offers a strategic advantage for efficient distribution of biofuels and renewable products across Asean and the wider Asian markets.