Work starts on new Malaysian biorefinery joint venture. Image source: Pixabay
Work starts on new Malaysian biorefinery joint venture. Image source: Pixabay

Construction of Pengerang Biorefinery – a joint venture between Malaysian energy group PETRONAS, Japanese biotech company Euglena and Eni subsidiary Enilive of Italy has begun in Malaysia.

The biorefinery would have the capacity to produce about 650,000 tonnes/year of sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO) and bio-naphtha from used vegetable oils, animal fats and vegetable processing waste upon completion, the companies said on 10 November.

The new facility in Pengerang, Johor, was scheduled to commence operations by the second half of 2028.

PETRONAS executive vice president and downstream CEO Sazali Hamzah said: “The groundbreaking of the Pengerang Biorefinery reflects the collective efforts to drive decarbonisation and advance energy transition in the region.”

Located within the Pengerang Integrated Complex (PIC) in Johor, the biorefinery’s geographical position and access to major international shipping lanes would help it meet biofuel demand, particularly across the Asian region, the companies said.

When announcing the new biorefinery last July, the companies said PETRONAS Mobility Lestari Sdn Bhd (PMLSB), a subsidiary of PETRONAS alongside Enilive, would be the largest shareholders of the joint venture.