Regional Oil: Euglena teams up with Eni, Petronas to invest in Malaysia biofuel JV
Wednesday, January 1 2025 - 10:20 PM WIB
By Romel S. Gurky
Japanese bioengineering firm Euglena Co., Ltd. announced last week the completion of its US$65 million financial commitment to a newly established joint venture company, Pengerang Biorefinery Sdn. Bhd., in Malaysia. The joint venture will oversee the construction and operation of a commercial-scale biofuel production plant in collaboration with Petroliam Nasional Berhad (PETRONAS) and Enilive S.p.A., a wholly owned subsidiary of Eni S.p.A.
The investment, made through Euglena’s special purpose subsidiary Euglena Sustainable Investment Limited (ESIL), secures a 5% indirect ownership stake in the joint venture. Euglena retains the right to increase its stake to up to 15% within nine months by contributing additional funds proportional to its ownership, as outlined in the shareholder agreement.
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To support further investment, Euglena is exploring additional financing options, including debt funding through ESIL. A commitment letter has been secured from domestic financial institutions for up to $30 million in debt financing. The company plans to leverage cash reserves, bank loans, and proceeds from the project’s anticipated cash flow to meet its funding requirements and increase its ownership stake.
The establishment of Pengerang Biorefinery Sdn. Bhd. was officially completed on 11 December 2024. This partnership marks a significant step forward for Euglena as it seeks to contribute to the global transition toward renewable energy and sustainable fuel production.
Editing by Alexander Ginting