28/12/2010 (Bernama) - Sime Darby Plantation Sdb Bhd will construct and operate a bioethanol demonstration plant in collaboration with Mitsui engineering and Shipbuilding Co Ltd.

The plant will be able to convert oil palm empty fruit bunches (EFB) into bioethanol, of which EFB is regarded as an excellent feedstock for biofuels production due to its abundant supply and yera-round availability, the Plantation arm of Sime Darby Bhd said on Tuesday.

In a statement, it said the joint-venture plant will be built next to Sime Darby Plantation's Tennamaram palm oil mill Bestari Jaya (Formerly known Batang Berjuntai), Selangor.

"The EFB can now move further up the value chain as a source of biofuel.

"Successful commercialisation will also help in managing solid waste produced in oil palm estates," Sime Darby Plantation Executive Vice President Franki anthony Dass said.

The Plant will have a processing capacity of 1.25 metric tonnes of EFB per day via its hydrothermal pre-treatment and enzymatic hydrolysis technology.

The plant will be utilised to collect operational data and confirm the technical feasibility of commercial-scale production of bioethanol from EFB.