Eni, Euglena and Petroliam Nasional Berhad (PETRONAS) announced that they are jointly studying the possibility of developing and operating a biorefinery in the Pengerang Integrated Complex (PIC), one of the largest integrated refinery and petrochemical developments in Southeast Asia.

The three parties are currently carrying out technical and economic feasibility assessments for the proposed project, with the investment decision expected to be reached by 2023 and the plant targeted to be completed by 2025.

To be located adjacent to PETRONAS’ existing integrated refinery and petrochemical facilities, the biorefinery will be able to leverage the company’s integrated value chain as well as existing utilities and facilities in PIC. The complex’s strategic location with easy access to major international shipping lanes will also enhance the planned refinery’s ability to cater for the rising demand for sustainable solutions worldwide.

The biorefinery is expected to have a flexible configuration to maximise the production of Sustainable Aviation Fuel (SAF) for aircraft as well as Hydrogenated Vegetable Oil (HVO) for on-road vehicles, diesel-powered trains, and marine transportation. This flexibility will enable the production to meet the ever-changing and growing energy demands of customers.

The biorefinery is also expected to have the capability to process about 650,000 tonnes per year of raw materials to produce up to 12,500 barrels per day of biofuels, namely SAF, HVO, and bio-naphtha. The raw materials to be used will not compete with those in the food chain such as used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils to be explored in the mid-term.

The planned biorefinery will use the Honeywell UOP’s Ecofining™ process which was developed by Eni in cooperation with Honeywell UOP.

Giuseppe Ricci, Chief Operating Officer for Energy Evolution at Eni, said: “For the biorefinery project to develop together with Euglena and PETRONAS in Malaysia, Eni is pleased to share its experience and its breakthrough technologies that enabled the company to make the world’s first conversion of a refinery into a biorefinery in Porto Marghera (Venice) in 2014, and to inaugurate a second one in Gela, Sicily in 2019.”

The Founder and President of Euglena, Mitsuru Izumo, said, “This project is a significant step for the commercialisation of our Biofuel business and our challenge to expediting biofuel usages and decarbonisation in Japan. I am extremely excited for the opportunity to work with the great partners of respective expertise and stride together for a brighter and cleaner future.”

“As PETRONAS continues to chart its course into the biofuels space, decarbonising and diversifying its production portfolio to cater for the rising global demand for sustainable solutions, this collaboration is momentous to unlock the partners’ respective strengths and jointly strengthen our position in the field of biofuels in Malaysia and around the world,” said Ahmad Adly Alias, Vice President, Refining, Marketing and Trading of PETRONAS’ Downstream business.