Pengerang Biorefinery Sdn. Bhd., a joint venture between PETRONAS, Enilive S.p.A., and Euglena Co., Ltd., has officially begun construction of a new biorefinery in Pengerang, Johor, marking a significant milestone for the project, reports Biodiesel Magazine.
The biorefinery will be able to process up to 650,000 metric tons of renewable feedstock annually and is expected to produce sustainable aviation fuel (SAF), hydrogenated vegetable oil (HVO), and bio-naphtha. Its feedstock sources will include waste materials such as used cooking oil, animal fats, and by-products from vegetable oil processing. The facility is scheduled to start operations in the second half of 2028.
The project reflects the joint commitment of PETRONAS, Enilive, and Euglena to expand access to cleaner and more competitive energy solutions.
PETRONAS Executive Vice President and CEO of Downstream Datuk Sazali Hamzah said the groundbreaking highlights the partners’ shared efforts to push decarbonisation and support the region’s energy transition. He said the biorefinery is a key element of PETRONAS’ broader transition strategy, which includes building a complete bio-based value chain and providing more low-carbon energy options.
Enilive CEO Stefano Ballista said the partnership with PETRONAS and Euglena will help accelerate the decarbonisation of transportation and strengthen the company’s commitment to sustainable products. He noted that with Enilive’s existing biorefineries in Italy and the United States, as well as new facilities under construction in Italy and South Korea, the Pengerang plant will help the company work toward its target of more than 5 million tons of bioproducts annually — including over 2 million tons of SAF — by 2030.
Euglena Founder and President Mitsuru Izumo said the project has evolved alongside rapid changes in the global energy landscape and is now entering a crucial stage as it approaches its planned 2028 start. He said the venture represents an important step toward expanding clean energy capacity in the ASEAN region and beyond. He reaffirmed Euglena’s commitment to R&D in microalgae and efforts to commercialise algal biofuel.
Located within the Pengerang Integrated Complex, the biorefinery is strategically positioned near major international shipping routes, enabling efficient distribution of biofuels across Asia.
The groundbreaking ceremony was officiated by Johor State Executive Council member Lee Ting Han, and attended by Permodalan Darul Ta’zim President and Group CEO Dato’ Ramlee A. Rahman and Penawar state assembly member Fauziah Misri, along with representatives from PETRONAS, Enilive, and Euglena.
