Petronas Chemicals enters into MOU for biorefinery offtake

Malaysia’s Petronas Chemicals Group Berhad (PCG) and Leaf Malaysia have entered into a non-binding Memorandum of Understanding (MOU) in relation to Leaf’s proposed biorefinery project in Malaysia.

The MOU provides for, among other things, a study of chemical markets and commercially ready bio-technologies. Subject to satisfactory findings in the study and the approval of PCG, the parties may pursue an offtake agreement for the fermentable sugars produced at the proposed Leaf facility in Segamat, Johor, Malaysia, on terms mutually agreed by the parties and consistent with global project finance standards.

Leaf Resources is one of the world’s leading companies in converting plant biomass into industrial sugars. Its proprietary process for converting biomass-to-functional industrial sugars enable a myriad of downstream technologies for the production of renewable chemicals that will substitute petrochemicals used in manufacturing today.

PCG is a leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world class production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of over 12 million tonnes/year, it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products.

Listed on the Malaysian stock exchange and with three decades of experience in the chemicals industry, PCG is part of the Petronas Group.