12/12/05  PUTRAJAYA, (Bernama) -- In support of the government's move towards renewable energy supply, the Malaysian Palm Oil Board (MPOB), Monday entered into agreements with three companies, namely Rubiatec Sdn Bhd, a subsidiary of Golden Hope Plantations Bhd; Kumpulan Fima Bhd and; Carotino Sdn Bhd for the development of three bio-diesel plants.

The plants would be located in Banting and Port Klang in Selangor, and Pasir Gudang in Johor.

At the signing, MPOB was represented by its director general Tan Sri Dr Yusof Basiron while Rubiatec by Golden Hope group chief executive Datuk Sabri Abdullah and Carotino by its managing director, Shien Chang.

The signing, held in conjunction with the three-day Felda National Conference which began here today, was witnessed by Deputy Prime Minister Datuk Seri Najib Razak and Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui.

Dr Yusof said the plants would be built at a cost of between RM40 million and RM50 million each.

The plants are expected to produce a total of 180,000 tonnes of oil palm bio-diesel.

Under the deal between MPOB and Rubiatec, MPOB would construct the biodiesel plant in Banting while the latter will construct the requisite supporting buildings, infrastructure and ancillary facilities.

MPOB would then lease the plant to Rubiatec for 20 years. Rubiatec would be also granted the license and authority to use the technology and know-how developed by MPOB to manufacture and produce palm bio-diesel on a commercial scale.

The first production of biodiesel from the plant is expected to come on stream in the second half of next year while full capacity production will begin in the second half of 2007.

Meanwhile, Shien said that the plant in Pasir Gudang will be developed by Carotino and MPOB on a 50:50 joint venture basis.

MPOB will bear a cost of RM24 million for the building of the plant while the remaining of about RM22 million will be borne by Carotino, he said.

The plant is expected to come on stream in the third quarter of next year producing 60,000 tonnes of palm bio-diesel a year, he said.

He also said that exporting the bio-diesel was part of the plan.

-- BERNAMA