Petronas, Eni and Euglena team up for new biofuels project in Malaysia
29/07/2024 (Upstream) - Petronas, Eni-controlled Enilive and Euglena have taken the final investment decision for a biorefinery that will be built within Petronas’ Pengerang Integrated Complex (PIC) in Johor, southern Malaysia.
The three companies plan to establish a joint venture company in Malaysia to construct and operate the biorefinery, with Petronas Mobility Lestari and Enilive as the largest shareholders.
Targeted to be operational by the second half of 2028, the biorefinery will have the capability to produce sustainable aviation fuel (SAF) and other biofuels such as renewable diesel/hydrogenated vegetable oil (HVO) to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise.
Construction of the biorefinery is expected to begin in the fourth quarter this year and, upon completion, it will have the capability to process about 650,000 tonnes per annum of raw materials to produce SAF, HVO and bio-naphtha.
Leveraging the PIC’s integrated facilities and utilities, the biorefinery will be strategically located close to feedstock supply sources while having easy access to major international shipping lanes, noted Petronas.
The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils and other biomass including microalgae oils that will be explored in the mid-term.
The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Ecofining — technology developed by Eni in cooperation with Honeywell UOP — and pre-treating unit; and products, with a configuration capable of maximising production of SAF for aircraft as well as HVO.
“As a progressive energy and solutions partner, this milestone will solidify our standing in the biofuels value chain beyond trading, paving the way for the establishment of a holistic bio-based ecosystem which offer[s] a feasible and sustainable solution to reducing carbon footprint,” said Petronas’ vice president, refining, trading and marketing, Ahmad Adly Alias.
Enilive’s chief executive, Stefano Ballista commented: “It is a milestone to reach our 2030 targets of biorefining capacity of more than 5 million tonnes per year and SAF optionality up to 2 million tonnes per year.
“With this new initiative… we will enter into the Asian market and have a distinctive global footprint.”
Mitsuru Izumo, founder and president of Japanese biotechnology start-up Euglena, noted the company had built the first small-scale biofuel production facility in Japan, and would expedite its microalgae research and development activities and supply algae oil to the global market.
“Our biorefinery will successfully meet growing demand of biofuel for Asean countries where [a] brighter future and cleaner environment are promised," he said.