27/09/05 (The Star) - THREE listed plantation groups have establishedseparate joint ventures with the Malaysian Palm Oil Board (MPOB) to set uppalm biodiesel plants in the country.

Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kuisaid the three plants"– two in Port Klang and one in Johor Baru " wouldhave an annual production of 60,000 tonnes each, slated for operationswithin the next 12 months.

"Most of the biodiesel produced by the three plants will be exported toEurope and Turkey which have high demand for biodiesel," Chin toldreporters after the official opening of MPOB International Palm OilCongress (PIPOC 2005) in Subang Jaya yesterday.

"It is also hoped that these plants will act as a catalyst to spur thegrowth of the biodiesel industry in Malaysia and worldwide."

Chin, however, declined to reveal the plantation groups involved.

He said with the escalating global crude oil price, which had exceededUS$70 per barrel, palm biodiesel was set to be a viable alternative topetroleum-based diesel.

Tan Sri Basiron (left) presenting a book on MPOB's test methods to DatukPeter Chin Fah Kui. On the right is Plantation Industries and Commoditiessecretary-general Datuk Michael Dosim Lunjew.

MPOB had projected that crude oil price over the next few years wouldcontinue to remain high, trading within the US$50-per-barrel level, headded.

MPOB director general Tan Sri Yusof Basiron said it would take up 50%interest each in the three biodiesel plants. He said MPOB expected toinvest about RM60mil in total.

"There were 10 companies which submitted their tenders to bid for thesebiodiesel plants," Yusof said, adding that MPOB had chosen those withexisting infrastructure facility and ample feedstocks, namely refinedbleached and deodorised (RBD) palm olein.

Yusof said MPOB, through its early involvement in research and developmenton biodiesel, had developed and acquired the technology to produce palmbiodiesel.

"For the benefit of the industry, MPOB has taken steps to license out thistechnology," he added.

Chin said Malaysia's palm oil stocks of between 1.3 and 1.5 million tonneswere sufficient for the initial development of the biodiesel industry.

On PIPOC 2005, Chin said the attendance of more than 1,700 participantsfrom over 42 countries made it the largest palm oil internationalconference so far.

He said the bi-annual congress had grown to be a leading internationalplatform on the oils and fats industry.

PIPOC 2005's theme, Technological Breakthroughs and Commercialisation "The Way Forward, will highlight over the next two days important issueslike crop production, sustainability, biotechnology and downstreamdevelopments in oleochemical, biomass, energy and biofuel, as well asmarket development.