Finance
Petronas, Enilive, Euglena start construction of new biorefinery in Malaysia
Published by Global Banking & Finance Review®
Posted on November 10, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 10, 2025
1 min readLast updated: January 21, 2026
Petronas, Enilive, and Euglena have started building a biorefinery in Malaysia to produce sustainable fuels, with operations set to begin in 2028.
(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.
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.
It will be in Pengerang, in the state of Johor, on the tip of the Malay Peninsula, a key location for international shipping routes.
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)
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.
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.
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.
Explore more articles in the Finance category
