PENGERANG — Pengerang Biorefinery Sdn Bhd, a joint venture between PETRONAS, Enilive S.p.A and Euglena Co., Ltd, marked a key milestone today with the groundbreaking ceremony for the development of a new biorefinery in Pengerang, Johor.
The biorefinery will have a processing capacity of up to 650,000 tonnes of renewable feedstock annually and is expected to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO) and bio-naphtha to meet the growing demand for cleaner energy solutions.
Feedstock for the facility will include waste such as used vegetable oils and animal fats, as well as residues from vegetable oil processing. The new facility is targeted to commence operations in the second half of 2028.
Pengerang Biorefinery represents a shared commitment by PETRONAS, Enilive and Euglena to meet the growing need for competitive and accessible cleaner energy solutions.
PETRONAS Executive Vice President and Chief Executive Officer of Downstream Datuk Sazali Hamzah said the groundbreaking reflects the partners’ collective efforts to drive decarbonisation and advance the energy transition in the region.
“Leveraging the synergy and strengths of our partnership, the new biorefinery is one of PETRONAS’ key initiatives to deliver on our energy transition strategy through a holistic bio-based value chain and an expanded suite of cleaner energy solutions.
“This is in line with PETRONAS’ aspiration to become an integrated energy leader in the next decade — serving the world’s energy needs safely, reliably and sustainably,” he said in a statement today.
Enilive Chief Executive Officer Stefano Ballista said the Pengerang Biorefinery, made possible through the strategic partnership with PETRONAS and Euglena, will accelerate the decarbonisation of transportation and reaffirm Enilive’s commitment to sustainable products.
“With Enilive’s biorefineries already operational in Italy and the United States, and new plants under construction in Italy and South Korea, the Pengerang facility marks another significant step towards achieving a production capacity of over five million tonnes per year, including more than two million tonnes of SAF by 2030.
“This supports the growing demand for sustainable mobility,” he said.
Euglena Founder and President Mitsuru Izumo expressed excitement over the groundbreaking, describing it as a major step forward in global decarbonisation efforts.
“Since the inception of this project, we have continued to evolve in response to the rapidly changing energy landscape, and now we are entering the next stage toward the planned commencement of operations in 2028.
“This project is a global endeavour and a powerful step toward a more sustainable future, particularly across the ASEAN region and beyond.
“We will continue investing in research and development of microalgae and advance our efforts toward the commercialisation of algal biofuel. I would like to express my heartfelt gratitude to all our partners and stakeholders who have supported this project,” he said.
Strategically located within the Pengerang Integrated Complex (PIC) in Johor, the biorefinery’s location and access to major international shipping lanes will enhance its ability to meet biofuel demand efficiently, especially across Asian markets.
The groundbreaking ceremony was officiated by Johor State Committee Chairman for Investment, Trade, Consumer Affairs and Human Resources Yang Berhormat Tuan Lee Ting Han.
Also present were Yang Berhormat Dato’ Ramlee A. Rahman, President and Group Chief Executive Officer of Permodalan Darul Ta’zim; Yang Berhormat Puan Fauziah Misri, Ahli Dewan Undangan Negeri for Penawar; Datuk Sazali Hamzah; Stefano Ballista; and Mitsuru Izumo. (Bernama)
