Finance

Petronas, Enilive, Euglena start construction of new biorefinery in Malaysia

Published by Global Banking & Finance Review

Posted on November 10, 2025

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· Last updated: January 21, 2026

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Petronas, Enilive, Euglena start construction of new biorefinery in Malaysia
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(Reuters) -A joint venture between Malaysia's Petronas, Italy's Eni biofuel unit Enilive and Japan's Euglena said on Monday it started building a new biorefinery in Malaysia to produce sustainable

Petronas and Partners Begin Construction of New Biorefinery in Malaysia

Overview of the New Biorefinery Project

(Reuters) -A joint venture between Malaysia's Petronas, Italy's Eni biofuel unit Enilive and Japan's Euglena said on Monday it started building a new biorefinery in Malaysia to produce sustainable fuels for the Asian market.

Location and Capacity

The plant is designed to process up to 650,000 tonnes of renewable feedstock per year, including waste materials such as used vegetable oils, animal fats and residues from vegetable oil processing. It will produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO) and bio-naphtha.

Operational Timeline

It will be in Pengerang, in the state of Johor, on the tip of the Malay Peninsula, a key location for international shipping routes.

Future Production Goals

The site is expected to begin operations in the second half of 2028, according to the companies' joint statement.    

"The new biorefinery is a further and relevant step forward towards the achievement of a production capacity over 5 million tons per year and over 2 million tons of SAF by 2030," Enilive's Chief Executive Officer Stefano Ballista said in the statement. 

(Reporting by Romolo Tosiani in Gdansk; Editing by Giulia Segreti)

Key Takeaways

  • Petronas, Enilive, and Euglena start biorefinery construction in Malaysia.
  • The plant will process 650,000 tonnes of renewable feedstock annually.
  • The biorefinery will produce SAF, HVO, and bio-naphtha.
  • Operations are expected to begin in the second half of 2028.
  • The project aims for over 5 million tons capacity by 2030.

Frequently Asked Questions

What is a biorefinery?
A biorefinery is a facility that integrates biomass conversion processes and equipment to produce fuels, power, and value-added chemicals from biomass. It aims to maximize the value of renewable resources.
What is Sustainable Aviation Fuel (SAF)?
Sustainable Aviation Fuel (SAF) is a type of aviation fuel made from sustainable resources. It reduces greenhouse gas emissions compared to conventional jet fuel and is part of efforts to make air travel more environmentally friendly.
What is Hydrogenated Vegetable Oil (HVO)?
Hydrogenated Vegetable Oil (HVO) is a renewable diesel fuel made from vegetable oils or animal fats. It can be used in diesel engines without modifications and helps reduce carbon emissions.

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