​PNG Backs First Large-Scale Biodiesel Project

The Papua New Guinea Government has given the green light to the country’s first major biodiesel development, marking a new chapter in its push for energy security and rural investment. The decision, approved by the National Executive Council, paves the way for processing facilities to be established in Pomio, East New Britain, and Central Province.

Pomio MP Elias Kapavore welcomed the move, describing it as a turning point for his district and the wider province. He said the initiative would open up economic opportunities while positioning Pomio as a contributor to the nation’s long-term growth.

“This is a significant moment for Pomio and East New Britain,” he said.
“It reflects a shared vision for development that delivers real opportunities for our communities and ensures our district plays a meaningful role in the country’s economic future.”

The project is being coordinated by InvestPNG in partnership with developer Mutual Wide Corporation, with plans to integrate oil palm production in Pomio to supply raw materials for domestic fuel processing.

MWC chief executive officer Mal Michael said the investment demonstrated how large-scale projects could align with national development priorities while driving growth at the local level.

“This is exactly the type of project PNG needs to unlock long-term, sustainable growth,” he said.
“It brings together agriculture, energy, and industrial processing into a single value chain that is anchored domestically.”

The initiative is expected to reduce the country’s reliance on imported diesel, which has long exposed Papua New Guinea to fluctuating global prices and foreign exchange challenges.

By producing fuel locally, the project aims to strengthen supply reliability while building a more resilient energy system for the future.

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