27/10/2005 (AP) - In a separate report from the one below, Channel News Asia was reporting yesterday that Archer Daniels Midland and Singapore's Wilmar Holdings (who have been longtime business partners) plan to site a 150,000 metric ton per year biodiesel plant on the same island that would house the Peter Cremer plant described below. ADM and Wilmar plan to have the plant operational by next year. For the full story, click here: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/175426/1/.html

Associated Press WorldStream via NewsEdge Corporation : SINGAPORE - Private German company Peter Cremer GmbH, a food and oil-based products maker, said Wednesday it plans to build Singapore's first biofuel plant.

"We selected Singapore for our first biodiesel plant in Asia because of its excellent connectivity. From Singapore, we have easy access to abundant palm oil feedstocks from the neighboring countries of Malaysia and Indonesia," said John Hall, global director of CremerOleo, the group's oleochemicals division, in a statement.

Biodiesel is a clean burning alternative fuel made from plant material or biomass such as sugar cane and palm oil. It can be used in diesel engines or blended with regular diesel fuel.

Biofuels become increasingly popular in recent years amid concerns over the world's diminishing oil and gas reserves and as countries try to reduce their dependence on imported fossil fuels.

Hamburg-based Cremer will invest an initial US$20 million (Ä16.5 million) to produce up to 200,000 metric tons (22,0462 U.S. tons) of biodiesel per annum by early 2007.

The facilities will be located on Jurong Island to the west of Singapore, the site of many of the city-state's chemical plants.

Cremer, a multibillion dollar family business, manufactures a range of products including breakfast cereals, animal feeds, and oleochemicals, which are chemicals derived from biological oils or fats.

Hall said the Singapore operations could be the first of many plants in Asia as countries in the region rethink their fuel policies amid growing concerns over global carbon dioxide emissions.