Petronas, Enilive and Euglena approve construction of renewable diesel, SAF biorefinery in Malaysia

Petroliam Nasional Berhad (Petronas), Enilive, a company directly controlled by Italian energy company Eni S.p.A., and Euglena Co. Ltd. have reached the final investment decision (FID) to develop a biorefinery to be located within Petronas’ Pengerang Integrated Complex in Johor, Malaysia, Eni announced July 26.

The companies first announced exploration of the project in late 2022.

The three companies will establish a joint-venture company in Malaysia to construct and operate the biorefinery with Petronas Mobility Lestari Sdn. Bhd., a subsidiary of Petronas, and Enilive as the largest shareholders.

Targeted to be operational by the second half of 2028, the biorefinery will have the capability to produce sustainable aviation fuel (SAF) and other biofuels such as renewable diesel to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise.

The construction of the biorefinery is expected to begin in the fourth quarter of this year.

Upon completion, it will have the capability to process about 650,000 metric tons per year of raw materials to produce SAF, renewable diesel and bionaphtha.

The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils, which will be explored in the midterm.

Leveraging Petronas’ integrated facilities and utilities at its Pengerang Integrated Complex in Johor, the biorefinery will be strategically located close to feedstock supply sources while having easy access to major international shipping lanes, enhancing its ability to meet the needs of its customers worldwide. 

The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability with state-of-the-art Ecofining™—a  technology developed by Eni in cooperation with Honeywell UOP—and pretreatment unit, with a configuration capable of maximizing the production of SAF for aircraft as well as renewable diesel.

“As a progressive energy and solutions partner, this milestone will solidify our standing in the biofuels value chain beyond trading, paving the way for the establishment of a holistic biobased ecosystem, which offers a feasible and sustainable solution to reducing [our] carbon footprint,” said Ahmad Adly Alias, Petronas’ vice president of refining, trading and marketing. “By leveraging the strengths and expertise of our partners, we are well-positioned to support the advancements in the global biobased economy while delivering affordable and accessible cleaner-energy solutions to customers worldwide, particularly in the Asia-Pacific region, in line with our ‘Net Zero Carbon Emissions 2050’ aspiration.”

Enilive CEO Stefano Ballista added, “Taking the final-investment decision on the biorefinery project in Malaysia confirms Enilive’s commitment in creating value in the biofuel business. It is a milestone to reach our 2030 targets of biorefining capacity of more than 5 million tons per year and SAF optionality up to 2 million tons per year. Since 2014, we have been running biorefineries in Italy and more recently in the U.S. as well. With this new initiative and in cooperation with Petronas and Euglena, we will enter into the Asian market and have a distinctive global footprint.”

Mitsuru Izumo, the founder and president of Euglena, said, “I truly believe it is the mission for a startup like Euglena to take the very first step with the courage and challenge that no other company in Japan has ever tried. We built the first small-scale biofuel production facility in Japan with the aim to support Japan’s advancement in biofuels. This project in Malaysia will enable us to pave the way to achieve a carbon-neutral society and aspiration in Japan. The project team of three partners will make their best efforts to construct and operate the biorefinery with their strength of expertise and talents. Euglena will expedite our microalgae research and development activities and supply algae oil to the global market. Our biorefinery will successfully meet growing demand of biofuel for [the Association of Southeast Asian Nations) countries where a brighter future and cleaner environment are promised.”