21/8/06 (Channel NewsAsia) SINGAPORE : Rotary Engineering has won a S$24 million contract from Germany's Peter Cremer to build a biodiesel process plant.

The plant on Jurong Island will produce biofuel and other downstream derivatives from palm oil.

The plant is targeted to be completed by June next year.

The Jurong plant will be Peter Cremer's first biodiesel plant in Asia and its biggest.

It is expected to produce up to 200,000 tonnes of biodiesel and account for 50 percent of its worldwide output.

Biodiesel has been gaining ground as a viable source of alternative energy in the wake of rising petroleum prices. - CNA/ms