Petronas/partners break ground on biorefinery in Malaysia

Pengerang Biorefinery Sdn. Bhd, a joint venture between Malaysian oil firm Petronas, Italy’s Enilive SpA and Japan-based biotechnology firm Euglena Co, recently marked a key milestone with the groundbreaking ceremony for the development of a US$1.3 billion biorefinery in Pengerang, Johor, Malaysia.

Located strategically within the Pengerang Integrated Complex (PIC) in the southern state of Johor, Malaysia, the biorefinery’s geographical advantage and access to major international shipping lanes will enhance its capability to meet the demands for biofuels and efficiently serve the markets, especially across the Asian region.

The biorefinery will have the processing capacity of up to 650,000 tonnes/year of renewable feedstock and is projected to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha. Feedstocks for the biorefinery will include wastes such as used vegetable oils and animal fats, and residues from the processing of vegetable oils. The new facility is targeted to commence operations by the second half of 2028 in line with the schedule.

The start of construction on the new plant follows the partners’ January 2025 award to Italy’s Maire subsidiary NextChem’s KT-Kinetics Technology SPA (KT Tech) to deliver engineering, procurement, construction, and commissioning (EPCC) services, as well as licensing of NextChem’s proprietary NX Reform technology, for a hydrogen production unit equipped to produce 38,000 cu m/hr of hydrogen for the biorefinery’s conversion processes.

Late last year, the partners awarded the main contractor contract to Samsung E&A Co to provide all main EPCC services for the new plant.

Approved for final investment decision in July 2024, the biorefinery will use the Eni-Honeywell UOP LLC co-developed proprietary Ecofining technology to maximise production of SAF and HVO.

Enilive’s Chief Executive Officer, Stefano Ballista commented, “The Pengerang biorefinery, made possible by the strategic partnership with Petronas and Euglena, will enable acceleration of the decarbonisation of transportation, and reaffirms Enilive’s commitment towards sustainable products. With Enilive’s biorefineries that are already operational in Italy and in the US, and with new plants under construction in Italy and South Korea, the new biorefinery in Pengerang is a further and relevant step forward towards the achievement of a production capacity over 5 million tonnes per year and over 2 million tonnes of SAF by 2030, supporting the growing need for more sustainable mobility.”