12/12/05 KUALA LUMPUR (Dow Jones)--Golden Hope Plantations Bhd.  Monday said its unit Rubiatec Bhd. and the Malaysian Palm Oil Board will jointly build a biodiesel plant.

Golden Hope said the project is in line with the government's policy to encourage the use of renewable energy.

"The project forms a base for Golden Hope, through Rubiatec, to position itself as a leader in the production of sustainable energy; it is also synergistic to its core business of plantations," Golden Hope said in a statement to the local stock exchange.

The government-owned Malaysian Palm Oil Board will construct the biodiesel plant, while Rubiatec will build supporting buildings, infrastructure and other facilities necessary for the operation of the plant, Golden Hope said.

The board will then lease the plant to Rubiatec for 20 years and Rubiatec will be granted a license to utilize the technology developed by the board to manufacture and produce palm biodiesel commercially, Golden Hope added.

The company didn't provide financial details of the deal. The company also didn't say where the plant will be located or when it is expected to commence operations. ADVERTISEMENT