KUALA LUMPUR: Petroliam Nasional Berhad (Petronas) and two foreign partners have made the final investment decision to develop a biorefinery located within Pengerang Integrated Complex (PIC), Johor.
Petronas with Italy's Enilive and Japan's Euglena will establish a joint venture company in Malaysia to construct and operate the biorefinery, with Petronas' subsidiary Petronas Mobility Lestari Sdn Bhd and Enilive as the largest shareholders.
It is expected 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 or hydrogenated vegetable oil (HVO), to cater to the growing demands of the global aviation and transportation industries.
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.
Leveraging 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, and pre-treating unit, and productsto maximise the production of SAF for aircraft as well as HVO.
Petronas vice president for refining, trading and marketing Ahmad Adly Alias said this milestone will solidify the company's position in the biofuels value chain beyond trading.
He said it is paving the way for a holistic bio-based ecosystem in Malaysia that will offer a feasible and sustainable solution to reducing carbon emissions.
"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," he said.
Enilive chief executive officer Stefano Ballista said the final investment confirmed the company's commitment in creating value in the biofuel business.
"With this new initiative and in cooperation with Petronas and Euglena, we will enter into the Asian market and have a distinctive global footprint," he added.
Meanwhile, Euglena founder and president Mitsuru Izumo said the project will enable the company to pave the way to achieve carbon neutral society and aspiration in Japan.
"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," he said.