Petronas's Gentari Expands Solar Energy Initiatives to Rural Sabah Communities

Petronas, through its clean energy arm Gentari, is enhancing solar energy accessibility in rural Sabah, benefiting homes, schools, and community spaces. At the Sabah Oil and Gas Energy Conference, Gentari highlighted its commitment to renewable energy, hydrogen, and green mobility, aiming for significant growth in renewable capacity and sustainable energy solutions. With advancements in solar technology and a focus on biofuels, Petronas is strategically aligning its operations toward achieving net zero carbon emissions by 2050, emphasizing sustainable aviation fuel as a key transitional solution.

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Published Sep 17, 2025

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Petronas, through its independent clean energy entity Gentari, is making significant strides in bringing reliable solar energy to underserved rural communities across Sabah. This initiative illuminates homes, schools, and community spaces, notably in regions like Pulau Banggi and Katalirus, enhancing educational opportunities and overall quality of life. Gentari's recent participation in the Sabah Oil and Gas Energy Conference showcased its dedication to clean energy solutions, focusing on renewable energy, hydrogen, and green mobility.

The name Gentari, blending the English word 'generation' with the Malay term 'lestari' (meaning sustainable), embodies its mission to provide responsibly sourced energy while advancing a sustainable future. With an impressive 8.0 GW in global renewable energy capacity, Gentari aims to install an additional 30 to 40 GW, while also supplying clean hydrogen and capturing a significant market share in public charging and vehicle services.

Ahmad Adly Alias, Petronas Vice President for Refining, Marketing, and Trading, noted the remarkable reduction in solar panel costs due to technological advancements, making rooftop installations now financially viable—a significant shift from just five years ago. As global efforts to decarbonize intensify, Petronas is realigning its downstream portfolio with a clear goal of achieving net-zero carbon emissions by 2050, positioning biofuels as a cornerstone of future energy strategies.

The transition to sustainable biofuels hinges on policy support, technological innovation, and strategic partnerships. Despite challenges on the path to net zero, Petronas is determined to lead this transition, emphasizing that biofuels must deliver cost-competitive and scalable solutions. Sustainable Aviation Fuel (SAF), produced from renewable feedstocks, is prioritized for hard-to-abate sectors like aviation, aligning with international regulations mandating carbon-neutral growth.

To meet the rising demand for SAF, Petronas has established a joint venture worth RM5.6 billion with Italy's Eni and Japan's Euglena, aimed at developing a state-of-the-art biorefinery in Pengerang, Johor. This facility will utilize 650,000 tonnes per year of waste-based materials, producing 12,500 barrels per day of bio-based products, including SAF and renewable diesel, starting in 2028.

However, Ahmad Adly acknowledges that the primary obstacle for SAF remains its cost, which is currently two to three times higher than conventional jet fuel. He stresses the need for continued innovation to improve affordability, alongside critical policy interventions such as tax waivers and carbon pricing mechanisms that could facilitate broader adoption.

With Malaysia's National Energy Transition Roadmap targeting a 47% SAF blend by 2050, a robust policy framework and realistic targets could drive sustainable growth for consumers and industry stakeholders alike. The path forward is clear: through innovation and collaboration, the transition to a cleaner energy future is not only necessary but achievable.