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Petronas, Enilive, and Euglena have started constructing a new biorefinery in Pengerang, Malaysia, to produce sustainable fuels for the Asian market. The facility will process up to 650,000 tonnes of renewable feedstock each year, including waste oils, animal fats, and processing residues, generating Sustainable Aviation Fuel, Hydrogenated Vegetable Oil, and bio-naphtha. Operations are expected to begin in the second half of 2028. The project is a key step toward reaching an annual production capacity of over 5 million tonnes, including 2 million tonnes of SAF by 2030, reflecting growing regional efforts in renewable energy and green fuel technologies.
Malaysia's Petronas, Italian energy company Eni's biofuel unit Enilive, and Japanese biotech firm Euglena have commenced construction of a new biorefinery in Malaysia aimed at producing sustainable fuels for the Asian market. Advertisement
The facility, located in Pengerang in Johor state at the southern tip of the Malay Peninsula, is strategically positioned along major international shipping routes. Designed to handle up to 650,000 tonnes of renewable feedstock annually, it will process various waste materials, including used vegetable oils, animal fats, and residues from vegetable oil processing. The output will include Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha.
The joint venture expects the plant to start operations in the second half of 2028. Enilive's Chief Executive Officer, Stefano Ballista, noted that the biorefinery represents a significant step toward achieving a production capacity of over 5 million tonnes annually, including more than 2 million tonnes of SAF by 2030.
This project aligns with a growing global push for sustainable energy solutions and builds on previous efforts by the partners to develop renewable fuel capacities across Asia. Petronas has been active in biofuel initiatives, while Eni and Euglena have experience in large-scale bioproducts and biofuel technology, respectively, making the collaboration a significant move in the region's green energy sector.
Source Reuters
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