Eni, Euglena and PETRONAS (Petroliam Nasional Berhad) announce today that they are jointly studying the possibility of developing and operating a biorefinery in one of the largest petrochemical areas in Southeast Asia, the Pengerang Integrated Complex (PIC).
The parties are currently carrying out technical and economic feasibility studies for the proposed project: the investment decision is expected to be taken by 2023 and the plant may be operational by 2025. The proximity to the refinery and the PETRONAS petrochemical complex, already existing, could allow the biorefinery to exploit the integrated value chain as well as the services and facilities present in the PIC. The strategic location of the complex, with easy access to the main international shipping routes, would also expand the possibilities of the refinery under study to satisfy the growing global demand for sustainable solutions.
The biorefinery is expected to have a flexible configuration to maximize the production of SAF (Sustainable Aviation Fuel) for aviation and HVO (Hydrogenated Vegetable Oil) for road, rail and marine transport. This flexibility would allow production to meet customers' growing and evolving energy demands.
The biorefinery is expected to have a processing capacity of approximately 650.000 tonnes per year and a production capacity of up to 12.500 barrels per day of biofuels (SAF, HVO and bio-naphtha), processed from raw materials that are not competition with the food chain, such as used frying oils, animal fats, waste from the processing of vegetable oils and other biomasses including microalgae oils which will be tested in the medium term.
The biorefinery will use Honeywell UOP's Ecofining™ technology, developed by Eni in collaboration with Honeywell UOP.
Giuseppe Ricci, Eni's Energy Evolution General Manager said: "For the biorefinery project to be developed together with Euglena and PETRONAS in Malaysia, we are pleased to share our experience and the cutting-edge proprietary technologies that have allowed us to create the first worldwide conversion of a refinery into a biorefinery in Porto Marghera (Venice) in 2014, and to inaugurate a second one in Gela, Sicily, in 2019.”
Eni expects to achieve carbon neutrality by 2050 through a decarbonisation process that aims to reduce the emissions generated throughout the entire life cycle of the products. To achieve the objective, in the field of mobility Eni combines all the solutions in a synergistic way: the role of biofuels is decisive because they represent an energy vector capable of making an immediate contribution to the decarbonisation of transport. HVO, of which Eni is the only Italian producer and the second in Europe, can be used added to diesel or pure in all approved engines: 100% pure HVO makes it possible to reduce CO2 emissions (calculated throughout the life cycle) between 60 and 90%, depending on the feedstock used, compared to the reference fossil mix. Furthermore, at the moment biofuels are also a concrete solution for the decarbonisation of air transport: Eni Biojet is the SAF (Sustainable Aviation Fuel) produced in the Eni refinery in Livorno, in synergy with the Eni biorefinery in Gela, which is mixed 20% in Jet Fuel Eni; and from 2024 in Gela the production of an additional 150 thousand tonnes/year of Eni Biojet will start, able to satisfy the potential mixing obligation of the Italian market for 2025.
Euglena is a leading Japanese company dedicated to biotechnology and whose growth is oriented towards sustainability, as demonstrated by the victory of two Prime Minister Prizes in 2015 (award for start-ups) and 2021 (award for SDGs). Thanks to its R&D capabilities, such as the “Euglena” microalgae mass cultivation technology, Euglena quickly grew in the healthcare sector and then moved on to the development of the biofuel sector. In 2018, Euglena completed Japan's first demonstration plant for the production of renewable fuels for jet and diesel engines and has supplied its products to companies and organizations working in land, air and marine mobility across the country. Euglena recently became the first Japanese supplier to introduce SAF into Narita International Airport's refueling system and completed the first supply of SAF to Japan's government aircraft.
Euglena's founder and president, Mitsuru Izumo, said, “This project is a significant step for the commercialization of biofuels and for our challenge to accelerate its use and speed up decarbonization in Japan. I am thrilled to have the opportunity to work with highly skilled partners, and to take a step forward together for a brighter and more sustainable future.”
“PETRONAS continues to chart its path in the biofuels sector, through the decarbonisation and diversification of its production portfolio, to meet the growing global demand for sustainable solutions: this collaboration is essential to leverage the strengths of the partners, and to jointly consolidate our position in biofuels in Malaysia and around the world,” said Ahmad Adly Alias, Vice President Refining, Marketing and Trading of Downstream at PETRONAS.
PETRONAS is the first Asian energy company to declare a goal of becoming carbon neutral by 2 and recently entered into a partnership to supply SAF for Malaysia Airlines' first commercial and passenger flights with a fuel cleaner and more efficient. The company is also evaluating other biofuel initiatives through co-feeding at its existing plants and through other channels. With this in mind, PETRONAS has renewed its ten-year partnership as Title and Technical Partner of the Mercedes-AMG PETRONAS F2050 Team ahead of the 1 season, when motorsport will move towards sustainable fuel. The activity is in line with PETRONAS' commitment not only to the broader biofuels programme, but also to offer and deliver clean energy solutions to its partners and customers.