Japan-based Euglena signed a comprehensive joint research agreemen with Petronas Research Sdn. Bhd. of Malaysia to establish large-scale production technology for microalgae and use it as a raw material for biofuels such as sustainable aviation fuel (SAF) and next-generation biodiesel fuel (Renewable Diesel Fuel or Hydrotreated Vegetable Oil (HVO)).

PETRONAS Research is a subsidiary of the Malaysian global energy group Petroliam Nasional Berhad, which handles the research and development division.

Euglena Co. and PETRONAS Research will begin joint research into the development of technologies for the large-scale production of microalgae, including cultivation, algae collection, oil extraction, and the use of by-products such as defatted algae, with the aim of supplying biofuel feedstock to a project to build and operate a biofuel production plant by Euglena Co., PETRONAS, and Enilive SpA, which announced its final investment decision in July 2024.

The commercial plant is scheduled to begin operation by the second half of 2028 and will produce Sustainable Aviation Fuel (SAF) and next-generation biodiesel fuel (Renewable Diesel or Hydrotreated Vegetable Oil (HVO)).

Construction of the commercial plant is scheduled to begin in the fourth quarter of 2024, and once completed, it will have a feedstock processing capacity of approximately 650,000 tons per year to produce SAF, HVO, and bio-naphtha.