Petronas set to commence construction of Malaysian biorefinery

Malaysian oil and gas major Petronas and its partners have reached the final investment decision regarding a biorefinery project in Malaysia.

PHOTO: Aerial view of Petronas' Pengerang Integrated Complex in Johor, Malaysia

Petronas has partnered with Enilive, an energy transition firm owned by oil major ENI, and Japanese biotech company Euglena for the project. The final investment decision marks the commitment of resources and funding necessary to proceed with the construction and operation of the biorefinery.

The biorefinery will have the capacity to produce around 650,000 mt/year of raw materials, including waste and residue feedstocks such as used vegetable oils, animal fats, waste from the processing of vegetable oils and other biomass.

Petronas also plans to explore microalgae oils as a feedstock in the future.

The plant will be able to produce a variety of biofuels, including hydrogenated vegetable oil (HVO) as a bunker fuel. Petronas has not confirmed the specific quantity of HVO it will supply for shipping.

The biorefinery is scheduled to be operational by the end of 2028. It will be located in the Petronas-operated Pengerang Integrated Complex in Johor, Malaysia.

Johor is located at the southern tip of Malaysia, making it the closest Malaysian state to bunker hub Singapore.

The plant’s location makes it “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,” Petronas said.

By Konica Bhatt

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