24/1/2006 (Business Times)  -  GOLDEN Hope Plantations Bhd is widening its global foray in biodiesel by teaming up with Godiver Handelsgesellschaft mbH to produce biodiesel in the Netherlands.

Golden Hope signed a letter of intent with Godiver on December 20 last year to establish a Dutch company that will build and operate a biodiesel production facility in Zwijndrecht, the Netherlands.

Under the letter of intent, Golden Hope will supply the raw materials to be processed at the facility into biodiesel as well as provide other operational and managerial on-site services.

Godiver, meanwhile, will be responsible for the marketing and sales of the biodiesel and the by-product, glycerol, produced by Golden Hope at the facility.

Both parties are expected to negotiate until March 15 2006 or at a later date, for the signing of a formal joint-venture agreement on the project.

According to Golden Hope, the anticipated demand for biodiesel in Europe is very high to meet the need for the blending of transport fuel with biodiesel.

"The economic analysis has shown favourable returns on investment for the biodiesel plant.

"The increasing demand of palm oil for biodiesel production will improve the palm oil price and in long term, will stabilise the price due to consistent demand created from the non-food application," it said in a statement to Bursa Malaysia.

Golden Hope said it will supply the feed oil.

"Golden Hope will also have the edge as we could utilise our own palm oil to fulfil the biodiesel plant requirement," it added.

Godiver, which was incorporated in Austria for more than 20 years, specialises in the barter, offset, clearing and trading worldwide in crude oil and oil products, petrochemicals, organic and inorganic chemicals, among others.