Petronas and Partners Break Ground on Malaysia’s First Large-Scale Biorefinery

Core Insights - The construction of a 650,000-tonne-per-year biorefinery in Pengerang, Malaysia, represents a significant advancement in sustainable fuel production in Asia, with operations expected to commence by 2028 [1][2]. Company Developments - Pengerang Biorefinery Sdn. Bhd., a joint venture involving PETRONAS, Enilive, and Euglena, has initiated the development of a biorefinery complex that will process renewable feedstocks to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha [2][4]. - PETRONAS aims to create a "holistic bio-based value chain" through this project, reinforcing its ambition to become an integrated energy leader by the next decade [4]. - Enilive's new facility will enhance its global biofuel presence, contributing to its goal of producing over 5 million tonnes of bioproducts and 2 million tonnes of SAF annually by 2030 [5]. - Euglena views this venture as a key milestone in its efforts to commercialize algal biofuels and expand decarbonization solutions in the ASEAN region [6]. Industry Impact - The biorefinery positions Malaysia as a crucial hub for advanced biofuel production, addressing the increasing pressure on Southeast Asia's aviation and transport sectors to decarbonize [3]. - The strategic location of the refinery within the Pengerang Integrated Complex allows for efficient distribution of biofuels across Asia, leveraging established infrastructure and logistics [3][7]. - The investment reflects Malaysia's broader strategy to attract green industry development, positioning Johor as a leader in clean fuels manufacturing [7].