29/10/2008 (Bernama), Kuala Lumpur - Japan's New Energy and Industrial Technology Development Organisation (NEDO) has offered its technology as an alternative fuel combustion support system using oil palm biomass and waste tyres as a source of energy generation for the cement industry in Malaysia.

This was being done in collaboration with the Cement Industries of Malaysia Bhd (CIMA), said Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui.

"With this technology, I am sure the cement industry which is heavily dependent on energy could utilise these materials in an efficient and environmentally friendly manner," Chin said.

"If the technology proves successful, it could set the stage for other companies in Malaysia to consider this cost-efficient technology propagated by NEDO," he said.

He was speaking at the signing of memorandum of understanding here today between the Malaysian Palm Oil Board (MPOB) and Malaysian Rubber Board (MRB) with NEDO on a model project for alternative fuel combustion in the cement industry.

Chin said CIMA through its wholly owned subsidiary, Negeri Sembilan Cement Industries Sdn Bhd, will be working with Japanese company Taiheiyo Engineering Corporation to implement the project.

For this to materialise, an implementation document will be signed between the two parties, he said.

Chin said the signing ceremony for the model project for alternative fuel combustion in the cement industry reflected the conclusion of discussions between the Plantation Industries and Commodities Ministry and NEDO.

"In this context, the cement industry is also at the centre of the climate change debate due to its heavy energy consumption and gas emissions that affect the environment," he said.

"We have to ensure measures are taken to mitigate the harmful gases that are released by this industry," he added.

NEDO president Takahiko Yamamoto said the project between CIMA and Taiheiyo is expected to be completed in two years at a cost of one billion yen.

CIMA will bear about 30 percent of the cost, he said at a press conference after the signing ceremony.

Upon completion, the plant is expected to produce 1.3 million tonnes of cement per year, he added.

On rubber and palm oil prices, Chin said the tripartite meeting between Malaysia, Thailand and Indonesia in Thailand had highlighted the need to balance supply and demand in global rubber production, especially from the three countries.

He said senior officers in the meeting also looked at ways to replant areas with old rubber trees.

Chin said the Cabinet committee meeting tomorrow will address the issue of monitoring crude palm oil prices, which have been on the downtrend now.

He also said that he will be going to Jakarta soon to attend a meeting to discuss issues concerning rubber and palm oil.