PNG Moves Toward Local Fuel Production with Biodiesel Plan

A major step toward energy independence has been taken in Papua New Guinea following Cabinet approval of a large-scale biodiesel project spanning Pomio in East New Britain and parts of Central Province.

MP Elias Kapavore

The endorsement by the National Executive Council signals a shift in policy direction, focusing on developing domestic fuel sources to reduce reliance on overseas imports.

Local MP Elias Kapavore, who has been pushing for the project, said the development would bring tangible benefits to communities in Pomio and surrounding areas.

“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.”

Under the arrangement, InvestPNG is working alongside Mutual Wide Corporation to roll out biodiesel plants, supported by large-scale oil palm cultivation to supply raw materials.

According to MWC chief executive officer Mal Michael, the project brings together key sectors into one integrated operation that will benefit both the national economy and rural communities.

“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.”

Papua New Guinea has long depended on imported diesel, leaving it vulnerable to international market shocks and supply disruptions.