KUANTAN, June 2 (Bernama) -- Mission Biotechnologies has invested RM100 million to set up a new biodiesel and glycerine purification refinery located at the Kuantan Port here.

Its Chairman, Tan Sri Razak Ramli said the refinery was designed to produce 100,000 tonnes of biodiesel a year using crude palm oil (CPO) as its primary feedstock.

He said the company has already secured the feedstock at a highly competitive cost.

"Mission Biotechnologies has also secured a five-year agreement with an European trading house for the sale of as much as 250,000 tonnes a year of biodiesel," he said at the ground breaking ceremony for the refinery here, Friday.

Also present were Deputy Prime Minister Datuk Seri Najib Tun Razak, Minister of Plantation Industries and Commodities Datuk Peter Chin and Menteri Besar Pahang Datuk Seri Adnan Yaakob.

Razak said, CPO and other key raw materials necessary for the production of biodiesel including methanol were readily available at the port giving the advantages for the company.

He said the project has already commenced and should be in commercial production in June 2007.

-- BERNAMA