03/10/2007 (Bernama) - MYFUEL Ltd has allocated RM160 million to set up biodiesel facilities at the Port Klang Free Zone (PKFZ), group managing director George Joukador said today.

He said the company had obtained a 3.2ha factory site on a 30-year lease to build two biodiesel plants with an output of 100,000 and 250,000 metric tonnes a year.

He said the plants will be equipped with process equipment from European supplier Desmet Ballestra.

“The palm oil-based methylester plants are expected to be completed next June 2008,” Joukador told a media briefing in Kuala Lumpur.

At full production the plants will create annual turnover and spin-offs estimated to exceed RM1 billion.

“The extraordinarily high palm oil prices, the choppy international biodiesel market conditions and the rise in fossil fuel prices certainly pose a challenge.

“However, they will not unduly upset the long-term prospects and viability of biodiesel,” he said.

Joukador said the company has signed supply arrangements with reputable palm oil suppliers and has signed agreements with third parties for marketing and sales to ensure the reliable supply of feed stocks and pre-marketing of end-products.

It has inked a marketing and distribution agreement with biodiesel brand leader World Energy Alternatives (WEA) under which all WEA purchases of biodiesel from Asia Pacific will be supplied by MyFuel.

MyFuel has two subsidiaries for the Malaysian operation - Biodiesel SP Sdn Bhd and Biodiesel LD Sdn Bhd.

Its chairman is Tan Sri Thong Yaw Hong, a former Treasury secretary-general who is one of MyFuel’s principal investors. — Bernama