PETRONAS, Enilive and Euglena to construct a biorefinery in Malaysia

PETRONAS, Enilive, and 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.

Ahmad Adly Alias, Vice President, Refining, Trading and Marketing at PETRONAS, said, “Together with our partners Enilive and Euglena, we will leverage each other’s strengths and expertise to advance the global bio-based economy and deliver affordable, accessible cleaner energy solutions to customers worldwide, particularly for Asia Pacific. We believe the project will contribute towards Malaysia’s National Energy Transition Roadmap (NETR) and see us progress towards PETRONAS’ Net Zero Carbon Emissions 2050 aspiration.”

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.

Stefano Ballista, Chief Executive Officer of Enilive, added, “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.”

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.

Mitsuru Izumo, Founder and President of Euglena, said, "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."