| MPOB To Invest RM60 Mln On Three Bio-Diesel Plants |
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PETALING JAYA, Sept 26 (Bernama) -- The Malaysian Palm Oil Board (MPOB) will invest RM60 million on three bio-diesel plants, with an annual capacity of 60,000 tonnes each, its director general Tan Sri Dr Yusof Basiron said.
Two of the plants would be in Port Klang and the third in Pasir Gudang, Johor. There was an earlier plan to have a bio-diesel plant in Labu, Negeri Sembilan.
The three plants, which would be on a 50:50 joint venture basis with three local partners are expected to commence operations within the next 12 months. The were 10 bids submitted for MPOB's tender for the bio-diesel plant, out of which the three partners were selected.
Yusof said the new partners already had the infrastructure and therefore there was no need for construction of new facilities.
That is why these partners were selected, as they were partially ready to commence operations, he said.
He, however, declined to name the three joint venture partners, generally believed to be listed companies.
"We are drafting the agreement to be signed with the joint venture partners," he told reporters after the official opening ceremony of the bi-annual International Palm Oil Congress or better known as PIPOC 2005.
Meanwhile, Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui said the earlier plan was just to have a pilot plant but given the higher demand and interest for bio-diesel fuel the plan was changed to have three plants.
A lot of parties had shown their interest to cooperate but MPOB had to select the right ones to get involved in their first efforts to produce bio-diesel commercially, he said.
Such plants are also expected to be built in East Malaysia, he said.
There is a high demand for bio-diesel from the West especially in Europe and Turkey, he said.
Refine Bleached and Deoderised (RBD) palm oil are expected to be used as the raw material for the production of biodiesel in these plants.
The bio-diesel produced from these three plants would be targeted for export but demand from the local market would be encouraged as well, Chin said.
-- BERNAMA
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