Malaysia – Pengerang Biorefining Ltd., a joint venture between Malaysian energy giants Petronas, Italy’s Eni subsidiary Eneleve, and Japan’s Euglena, celebrated the groundbreaking ceremony for its new biorefinery in Pengerang, Johor, Malaysia.
This achievement represents an important step towards strengthening sustainable energy supplies globally.
Huge processing capacity and sustainable fuel
The new biorefinery will have a renewable feedstock processing capacity of up to 650,000 tons per year. It aims to produce a range of high-value, sustainable biofuels, including sustainable aviation biofuel (SAF-biojet), hydrogenated vegetable diesel (HVO), and bionaphtha.
The refinery’s raw materials will include waste such as used cooking oil, animal fats, and residues from vegetable oil processing. The new plant is scheduled to begin operations by the second half of 2028.
Strategic partnership for carbon removal
The Pengerang Bio Refinery embodies the three companies’ shared commitment to meeting the growing global demand for more competitive and sustainable energy solutions.
Datuk Sazali Hamzah, Petronas’ Executive Vice President, affirmed that the project reflects their joint efforts to promote decarbonization. He added that they are thus supporting the energy transition in the region and that the refinery is a key initiative in achieving Petronas’ energy transformation strategy.
For his part, Stefano Ballesta, CEO of Enelive, said the refinery will accelerate efforts to decarbonize the transportation sector. It also reinforces Enelive’s commitment to providing sustainable products. Ballesta added:
“The Pengerang refinery represents another important step towards achieving an annual production capacity exceeding five million tons. This includes more than two million tons of sustainable aviation fuel (SAF) by 2030.”
Mitsuru Izumo, founder and chairman of Euglena, also expressed his delight at the start of the construction phase, noting that the project is of global importance and represents a step towards building a more sustainable future, particularly in the ASEAN region.
Strategic location and serving Asian markets
The biorefinery is strategically located within the Pengerang Integrated Complex (PIC) in Johor. This location allows it to benefit from access to major international shipping lanes. Consequently, it will enhance its ability to meet the growing demand for hydrolyzed biofuels and serve markets efficiently, particularly in Asia.
