23/2/06 (The Edge Daily)  -  BIOX Group BV, a European-based supplier of biofuel blends for the energy sector, is in talks with several public-listed oil palm plantation companies to secure biomass for its biofuel power plants in Europe.

Its chief financial officer, Edgare Kerkwijk, said the company was looking into forming partnerships with the non-government linked local plantation companies.

He hoped to form a JV in the coming months before BIOX Group went for listing on the London Stock Exchange by year-end.

Kerkwijk said it was looking into investing between US$500,000 (RM1.85 million) to US$1 million for any palm oil-related project.

“We need a partner with considerable landbank. We want to secure palm oil fuel for our power stations and we need long-term contracts,” Kerkwijk told reporters a media briefing at Invest Malaysia 2006 in Kuala Lumpur on March 23.

He said Malaysia and Indonesia were strategic locations for the company to get supply of biofuel.

BIOX managing director, Arno Hendriks, said palm oil imports in Europe for the purpose of biodiesel was 90,000 tonnes last year while rapeseed oil imports were 2.5 million tonnes.

However, he said there may be a shortage in rapeseed oil in the future which would increase demand for palm oil for biodiesel production as crude oil prices remain high.

Hendriks said palm oil prices were favourable compared with other vegetable oils and with the potential of crude oil prices increasing, there would be support for a palm oil-based bio energy market.