(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 10. Pengerang Biorefinery Sdn. Bhd., a joint venture between PETRONAS, Enilive S.p.A, and Euglena Co., Ltd, has marked a major milestone with the groundbreaking ceremony for its new biorefinery in Pengerang, Johor, Malaysia, Trend reports.

The facility will process up to 650,000 tons of renewable feedstock annually to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha. Feedstocks will include used vegetable oils, animal fats, and residues from vegetable oil processing. The biorefinery is scheduled to commence operations in the second half of 2028.

PETRONAS Executive Vice President and CEO of Downstream Datuk Sazali Hamzah said the project reflects a joint effort to drive decarbonisation and advance the energy transition in the region. “Leveraging the synergy of our partnership, the new biorefinery is a key initiative to deliver on our energy transition strategy through a holistic bio-based value chain and expanded cleaner energy solutions,” he said.

Enilive CEO Stefano Ballista highlighted the project's role in accelerating transport decarbonisation and growing SAF production. Euglena Founder and President Mitsuru Izumo added that the facility represents a global effort toward sustainable energy and a more sustainable future, particularly across ASEAN.

Strategically located within the Pengerang Integrated Complex, the biorefinery benefits from access to major international shipping lanes, supporting efficient distribution of biofuels across Asia.

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