Pengerang biorefinery breaks ground, promising sustainable fuel for Asia

Pengerang Biorefinery, a joint venture between PETRONAS, Enilive and Euglena celebrated a major milestone with the official groundbreaking of a new biorefinery in Pengerang, Johor, Malaysia. This project highlights a strong commitment to advancing cleaner energy solutions and sustainable development.

The new facility will have the capacity to process up to 650,000 tonnes of renewable feedstock each year. It aims to produce SAF, HVO, and bio-naphtha to meet rising global demand for eco-friendly energy sources. The plant will use waste materials; used vegetable oils, animal fats, and residues from vegetable oil processing as feedstocks.

Construction is to be completed with operations beginning in the second half of 2028. The project exemplifies the shared dedication of PETRONAS, Enilive, and Euglena to provide more accessible and competitive clean energy options.

PETRONAS Executive Vice President and CEO of Downstream, Datuk Sazali Hamzah, emphasized the significance of the project. “The groundbreaking of the Pengerang Biorefinery reflects our collective efforts to drive decarbonisation and energy transition in the region,” he said. “This initiative is part of PETRONAS’ strategy to deliver a broad range of cleaner energy solutions and support our goal to become an integrated energy leader in the next decade.”

Enilive’s CEO Stefano Ballista highlighted the project’s role in transportation decarbonisation. “Our partnership with PETRONAS and Euglena enables us to accelerate sustainable mobility,” he stated. “This new plant in Malaysia will help us reach over 5 million tons of production annually, including more than 2 million tons of SAF by 2030.

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Euglena’s Founder and President, Mitsuru Izumo,  commented: “This groundbreaking marks a step toward a more sustainable future.” “We are committed to expanding decarbonisation solutions, especially through microalgae research and algal biofuel commercialization, supporting climate change efforts across ASEAN and beyond.”

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