26/09/05 PETALING JAYA, (Bernama) -- The Malaysian Palm Oil Board (MPOB)will invest RM60 million on three bio-diesel plants, with an annualcapacity of 60,000 tonnes each, its director general Tan Sri Dr YusofBasiron said.

Two of the plants would be in Port Klang and the third in Pasir Gudang,Johor. There was an earlier plan to have a bio-diesel plant in Labu,Negeri Sembilan.

The three plants, which would be on a 50:50 joint venture basis with threelocal partners are expected to commence operations within the next 12months. The were 10 bids submitted for MPOB's tender for the bio-dieselplant, out of which the three partners were selected.

Yusof said the new partners already had the infrastructure and thereforethere was no need for construction of new facilities.

That is why these partners were selected, as they were partially ready tocommence operations, he said.

He, however, declined to name the three joint venture partners, generallybelieved to be listed companies.

"We are drafting the agreement to be signed with the joint venturepartners," he told reporters after the official opening ceremony of thebi-annual International Palm Oil Congress or better known as PIPOC 2005.

Meanwhile, Minister of Plantation Industries and Commodities, Datuk PeterChin Fah Kui said the earlier plan was just to have a pilot plant butgiven the higher demand and interest for bio-diesel fuel the plan waschanged to have three plants.

A lot of parties had shown their interest to cooperate but MPOB had toselect the right ones to get involved in their first efforts to producebio-diesel commercially, he said.

Such plants are also expected to be built in East Malaysia, he said.

There is a high demand for bio-diesel from the West especially in Europeand Turkey, he said.

Refine Bleached and Deoderised (RBD) palm oil are expected to be used asthe raw material for the production of biodiesel in these plants.

The bio-diesel produced from these three plants would be targeted forexport but demand from the local market would be encouraged as well, Chinsaid.

-- BERNAMA