MACHANG, July 2 (Bernama) -- Felcra Bhd is studying various technologies,both local and from outside, to get the most suited for the production ofdiesel from oil palm biomass.

Chairman of Felcra Datuk Hamzah Zainuddin said the study was important sothat a high price for the raw material could be maintained at theinternational market.

"We want the settlers and government to continue to enjoy the benefit ofhigher price for the commodity in the long run," he told reporters afterpresenting excellence awards for students at the Sekolah KebangsaanMachang here, Friday.

Zainuddin said the study was in line with the government's move toencourage government agencies and private sector companies to venture intothe new area of biodiesel production.

He said Felcra right now was only waiting for the approval of the Ministryof Rural Development and Regional and the Finance Ministry to put intoimplementation its study.

He said if its proposal is accepted, Felcra would set about establishingthe related plants in the near future.

Zainuddin also said that in order to ensure that participants of Felcraand their next generation continue to progress and develop theircompetitiveness, the management of Felcra had given out a tender worthRM400 million to the Cooperative participated by its members.

He said the tender would be for various works in the plantation sector andrelated to the development of Felcra.

-- BERNAMA