Regional Oil: PETRONAS, partners reach FID to construct a biorefinery in Malaysia
Tuesday, July 30 2024 - 02:49 PM WIB
By Rara Suratmi
Malaysian national oil, gas firm Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A (a company directly controlled by Eni S.p.A.), and Euglena Co., Ltd. (Euglena) have reached the final investment decision (FID) to develop a biorefinery which will be located within PETRONAS’ Pengerang Integrated Complex (PIC), Johor, Malaysia.
The three companies will establish a joint venture company in Malaysia to construct and operate the biorefinery, with PETRONAS Mobility Lestari Sdn Bhd (PMLSB), a subsidiary of PETRONAS, 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.
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The construction of the biorefinery is expected to begin in the fourth quarter of this year, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.
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 which will be explored in the mid-term. Leveraging PETRONAS’ PIC integrated facilities and utilities, the biorefinery will be strategically located 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.
The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Ecofining™ (a technology developed by Eni in cooperation with Honeywell UOP) and pre-treating unit, and products, with a configuration capable of maximising the production of SAF for aircraft as well as HVO.
Editing by Alexander Ginting