Papua New Guinea government advances landmark biodiesel project

District leadership and project stakeholders, Pomio District, East New Britain Province. (Photo: InvestPNG)

InvestPNG announced April 20 that the Papua New Guinea government has taken a significant step toward strengthening national energy security and accelerating domestic industrial development, with the National Executive Council endorsing the country’s first large-scale biodiesel project, comprising facilities in Pomio District, East New Britain, and Central Province.

The project, facilitated by InvestPNG in coordination with project developer Mutual Wide Corp., establishes biodiesel facilities across both locations, with large-scale oil-palm cultivation in Pomio supplying feedstock for domestic processing.

This initiative represents a major shift in the country’s energy and economic model, moving from reliance on imported fuels toward a more resilient, domestically anchored energy system.

Discussions are also underway regarding an expansion of the project into Lae.

Papua New Guinea currently remains heavily dependent on imported diesel, exposing the economy to global price volatility, foreign-exchange pressures and supply-chain disruptions.

The project directly addresses this structural vulnerability by creating a secure, local fuel supply.

Elias Kapavore, the minister for health and local member for the Pomio District, has been a strong and consistent advocate for the project, playing a key role in advancing it to this stage.

“This is a significant moment for Pomio and East New Britain,” Kapavore 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.”

By integrating oil-palm cultivation with downstream biodiesel processing, it ensures that more value is retained within Papua New Guinea rather than exported as raw commodities.

The Central Province facility forms a key part of the national biodiesel platform and has been progressed under the leadership of Jelta Wong, the minister for fisheries and marine resources.

Mal Michael, CEO of Mutual Wide Corp., said the project demonstrates how large-scale investment can support both national priorities and local economic development.

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