KLANG, Aug 5 (Bernama) -- Golden Hope Plantations Bhd expects to produce close to 400,000 tonnes of biodiesel by 2008, said its group chief executive, Datuk Sabri Ahmad Saturday.

"We should be producing nearly 400,000 tonnes by 2008," he told reporters after a visit by Indonesian President, Susilo Bambang Yudhoyono to the company's biodiesel plant at Teluk Panglima Garang Industrial Estate here.

By next year, Sabri said a total of 20 biodiesel factories would have started their commercial productions in the country.

"We anticipate about two million tonnes of palm products will be used as raw material," he said.

Thus, Sabri said there "is still a long way to go" to achieve the six million crude palm oil (CPO) that the government aims to allocate as feedstock for the production of biofuel and biodiesel.

He also said that Golden Hope will send its first shipment of biodiesel to Japan in mid-August.

"It will be used for transportation," he added.

Commenting on Susilo's visit, Sabri said the president wanted to explore business opportunities that both countries could collaborate.

"We see the opportunity in biodiesel. We have the opportunity to develop the new industry to become the world leader in terms of supplying biodiesel," added Sabri.

Both Malaysia and Indonesia control about 80 percent of the world's production of palm oil.

-- BERNAMA