PETRONAS, ENI, and Euglena to develop biofuel refinery in Johor for sustainable aviation fuel and renewable diesel

MALAYSIA: PETRONAS is set to take another big step in Pengerang, Johor — this time teaming up with Italy’s ENI and Japan’s Euglena to build a biofuel refinery that will produce Sustainable Aviation Fuel (SAF) and renewable diesel (HVO).

The news came from Johor State Executive Council Member Lee Ting Han, who shared the update in a translated Facebook post. Lee called PETRONAS “one of the pride of Malaysia” and noted that Pengerang is already home to the PETRONAS Refinery and Petrochemical Integrated Development (RAPID) project, part of the massive Pengerang Integrated Complex (PIC), which is one of the largest energy hubs in the region.

Driving Johor’s green energy push

Lee said that following discussions between state officials and PETRONAS management, it’s clear this new venture will bring both economic and environmental gains. The production of SAF and HVO will help Malaysia progress towards a greener future, while helping maintain Pengerang’s reputation as a hub for sustainability and innovation.

It’s not just about the technology — the project is expected to open up good-quality jobs for locals and give Johor a head start in the fast-growing renewable fuel industry.

What it could mean for Singapore

If you’re a frequent flyer out of Changi or work in Singapore’s aviation sector, this could be closer to home than you think. With Pengerang just across the Causeway, a steady supply of SAF from Johor could help Changi Airport and its airlines meet tough international sustainability targets without paying the high costs of importing from far-off suppliers.

For the everyday traveller, it could mean flying on cleaner, more environmentally friendly planes — without ticket prices soaring from expensive fuel imports.

And it’s not just about the skies. Renewable diesel from the project could find its way into Singapore’s buses, trucks, and even ferries, cutting carbon emissions without replacing existing engines. In other words, cleaner fuel could start powering your daily commute as well as your holiday flights.

Backed by the state

Lee stressed that the Johor State Government will give its full support to ensure the refinery is a success.

“This project will not only drive the country’s green transformation, but will also create quality job opportunities, bring renewable energy technology to Johor, and strengthen Pengerang’s position as a regional energy hub,” he said.

The partnership among PETRONAS, ENI, and Euglena is being seen as another win for Johor’s position on the energy map — and a clear sign that Malaysia is serious about cleaner fuel for the future.

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