23/03/2012 (Business Times) - Sime Darby Bhd's wholly-owned subsidiary, Sime Darby Plantation Sdn Bhd, has signed a MoU with the government and 18 other participants to develop oil palm biomass in the country.

The conglomerate said the MoU would see the possibility of a consortium agreement to develop the required knowledge and technology for oil palm biomass utilisation for sustainable bio-based products and practices.

The government was represented by Malaysia Innovation Agency. The MoU, effective for three months, will be automatically extended for another three months in the event a consortium agreement cannot be executed during the effective period.

"The parties may mutually agree in writing for a further extension, which shall not exceed 12 months from the MoU signing date," the company said in a filing to Bursa Malaysia.

The MoU does not constitute a joint venture, a partnership or a relationship of principal and agent between the parties, and is not intended to have a legal and binding obligation between the parties.

Other parties are soon-to-be-listed Felda Global Ventures Holdings Bhd, IOI Corporation Bhd, Malaysia Palm Oil Board, Universiti Teknologi Malaysia, Universiti Putra Malaysia, SIRIM Bhd, POIC, Purac Biochem B.V, Novozymes A/S, LG Chem Ltd, BE-Basic, TU Delft, Wageningen University and Research Centre, Bioclear B.V, Biodetection Systems B.V, BIgg Research B.V, BIRD Engineering B.V and CKade. -- Bernama