Pengerang, Malaysia — Engerang Biorefinery Sdn. Bhd., a joint venture (JV) between PETRONAS, Enilive S.p.A, and Euglena, a Japanese biotechnology company, has officially broken ground on its new biorefinery project in Pengerang, Johor, marking a significant milestone in the development of Malaysia’s renewable energy industry.

Enilive S.p.A. is a subsidiary of Italy’s Eni S.p.A., created to focus on bio-refining, biomethane, and sustainable mobility as part of Eni’s broader decarbonization strategy.

The upcoming facility will have a processing capacity of up to 650,000 tons of renewable feedstock annually and will produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha. The refinery will utilize waste-based feedstocks such as used vegetable oils, animal fats, and residues from vegetable oil processing, reinforcing the partners’ focus on circular and low-carbon solutions.

Scheduled to begin operations in the second half of 2028, the Pengerang Biorefinery aims to help meet growing regional and global demand for cleaner, more accessible, and cost-competitive energy products.

According to the partners, the project underscores a shared commitment by PETRONAS, Enilive, and Euglena to advancing sustainable energy development and supporting the global transition toward a low-carbon future.

This not the only partnership between Eni and Petronas. Recently, the two companies signed a binding Investment Agreement on 3 November 2025 to establish a 50/50 upstream joint-venture company “NewCo” that will combine selected assets from both companies in Malaysia and Indonesia.