27/12/2011 (Business Times) - Kewalram Chanrai Group wants to increase its footprint in Malaysia, especially in the palm oil sector.

Its subsidiary EcoOils is setting up a plant to recover palm oil from spent bleaching earth, a palm refining solid waste, in Lahad Datu, Sabah.

According to Kewalram Chanrai Group chief executive officer N.G. Chanrai, the company had acquired 2.27ha within a palm oil industry cluster.

So far, it has set up two other plants in Johor and Negri Sembilan, both of which are operating at full capacity.

“Capacity at both plants have been increased to cater to the increased activities in palm oil refining space,” said Chanrai, adding that the ground-breaking ceremony was held in November.

EcoOils has developed in Malaysia a more efficient and eco-friendly process to recover oil which may have a biotech element.

He said the recovered oil has low carbon footprint and the company is taking help of Sirim and Malaysian Palm Oil Council to gain access to European Union markets in view of tougher GHG (greenhouse gas) criteria.

The Singapore-based holding company has tied up with German technology suppliers with Indian equipment suppliers to provide turnkey extraction solutions for fibre and palm kernel meal.

It also provides a comprehensive solution to handle the entire waste of palm oil mills like empty fruit bunch POME, palm fronds and decanter sludge.

The technology has four times more efficient bio-methanisation process generating gas which can be converted to power and bio fertilisers.

The firm also has plans to replicate its operations across the region.