Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A (a company directly controlled by Eni S.p.A.), and Euglena Co., Ltd. (Euglena) have reached the final investment decision (FID) to develop a biorefinery which will be located within PETRONAS’ Pengerang Integrated Complex (PIC), Johor, Malaysia.

The three companies will establish a joint venture company 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.

Targeted to be operational by the second half of 2028, the biorefinery will have the capability to produce Sustainable Aviation Fuel (SAF) and other biofuels such as Renewable Diesel/ Hydrogenated Vegetable Oil (HVO) to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise.

The construction of the biorefinery is expected to begin in the fourth quarter of this year, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.

The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils which will be explored in the mid-term. Leveraging PETRONAS’ PIC integrated facilities and utilities, the biorefinery will be strategically located close to feedstock supply sources while having easy access to major international shipping lanes, enhancing its ability to meet the needs of its customers worldwide.

The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Ecofining™ (a technology developed by Eni in cooperation with Honeywell UOP) and pre-treating unit, and products, with a configuration capable of maximising the production of SAF for aircraft as well as HVO.

PETRONAS’ Vice President, Refining, Trading and Marketing, Ahmad Adly Alias said, “As a progressive energy and solutions partner, this milestone will solidify our standing in the biofuels value chain beyond trading, paving the way for the establishment of a holistic bio-based ecosystem which offer a feasible and sustainable solution to reducing carbon footprint. By leveraging the strengths and expertise of our partners, we are well-positioned to support the advancements in the global bio-based economy while delivering affordable and accessible cleaner energy solutions to customers worldwide, particularly in the Asia Pacific region, in line with our Net Zero Carbon Emissions 2050 aspiration.”

Enilive’s Chief Executive Officer, Stefano Ballista commented, “Taking the final investment decision on the biorefinery project in Malaysia confirms Enilive commitment in creating value in the biofuel business. It is a milestone to reach our 2030 targets of biorefining capacity of more than 5 million tonnes/year and SAF optionality up to 2 million tonnes/year. Since 2014, we have been running biorefineries in Italy and more recently in the United States of America as well. With this new initiative and in cooperation with PETRONAS and Euglena, we will enter into the Asian market and have a distinctive global footprint.”

Euglena Co., Ltd.’s Founder and President, Mitsuru Izumo said, “I truly believe it is the mission for a startup like Euglena to take the very first step with courage and challenge what no other company in Japan has ever tried. We built the first small-scale biofuel production facility in Japan with the aim to support Japan’s advancement in biofuels. This project in Malaysia will enable us to pave the way to achieve carbon neutral society and aspiration in Japan. The project team of three partners will make their best efforts to construct and operate the biorefinery with their strength of expertise and talents. Euglena will expedite our microalgae research and development activities and supply algae oil to global market. Our biorefinery will successfully meet growing demand of biofuel for ASEAN countries where brighter future and cleaner environment are promised.”