Petronas, in partnership with Enilive (the biofuels arm of Italy’s Eni) and Japan’s Euglena Company Limited, has commenced construction of a major biorefinery in Pengerang, Johor, under the Pengerang Biorefinery Sdn Bhd joint venture. The facility, located within the Pengerang Integrated Complex (PIC), will have the capacity to process up to 650,000 tonnes of renewable feedstock annually, including used cooking oils, animal fats, and other organic residues.
Scheduled to begin commercial operations in the second half of 2028, the biorefinery will produce sustainable aviation fuel (SAF), hydrogenated vegetable oil (HVO), and bio-naphtha. The project leverages PIC’s extensive infrastructure and proximity to international shipping routes. The broader Pengerang Integrated Petroleum Complex (PIPC), of which PIC is a part, represents Petronas’ largest downstream investment, valued at approximately USD27 billion.
Also, the Pengerang facility will be a key addition to Enilive’s growing global biofuel network, complementing its operational and under-construction plants in Italy, the US, and South Korea. Together, these facilities aim to achieve over 5 million tonnes of renewable fuel production capacity annually, including more than 2 million tonnes of SAF by 2030, in support of the global transition to sustainable mobility.