3/11/06 SINGAPORE (Reuters) - Singapore-listed Advanced Holdings Ltd. plans a 100,000 tonnes per year biodiesel plant in Malaysia, to take advantage of the nation's ample palm oil supply, a company source said on Friday.

"Malaysia is the largest producer of palm oil and accounts for more than 50 percent of world palm oil output," said Kar Wong, managing director of Advanced Holdings.

The plant's feedstock will be mainly crude palm oil and refined, bleached and deodorised palm oil, he said, but the firm's technology would allow it to consider other feedstocks.

It will be built in Kuantan, Pahang state.

He declined to comment on the financial investment, saying Advanced Holdings is still in the midst of finalising plans for the project.

The firm has not set a date for completion of the plant but normal delivery of biodiesel-making equipment will be approximately six to nine months, he added. The plant hopes to tap into European and United States markets, currently the world's largest biodiesel consumers.

"The promotion of biofuels in these nations for environmental reasons will help drive the demand for biodiesel through tax benefits and regulations," Wong said.