Datuk Peter Chin

SEREMBAN, April 24 (Bernama) -- A bio-diesel plant, the first in thecountry, will be built in Labu in Negeri Sembilan, Plantation Industriesand Commodities Minister Datuk Peter Chin Fah Kui said.

He said the pioneer plant, which will use local technology, was a jointventure between the Malaysian Palm Oil Board (MPOB) and Golden HopePlantations.

"MPOB as a research institution has been given the go ahead to invest RM40million in the plant," he told reporters after launching Chemical Companyof Malaysia Bhd (CCM)'s Golden Growers Club in conjunction with theMalaysian Investment Funds 2005 expo here Sunday.

Also present were the President and Chief Executive Officer of KumpulanPermodalan Nasional Bhd (PNB) Tan Sri Hamad Kama Piah Che Othman, ManagingDirector of CCM Dr. Mohamad Hashim Ahmad Tajudin and state secretary DatukAbdullah Sani Abdul Hamid.

Chin said the plant, which was expected to be completed in three years,would produce 5,000 tonnes of bio-diesel a month or 60,000 tonnes a year.

He said that the alternative vehicle fuel, which was environment friendly,would be exported to Europe because of the high demand and good pricesthere.

Chin said the fuel could not be used in Malaysia as the existinginfrastructure of the major oil companies in the country to blend thebio-diesel with petroleum diesel was insufficient.

The companies would have to work together with MPOB and Golden HopePlantations to develop the infrastructure, he said, adding that thereweren't any legal provisions for the alternative fuel in the country atthe moment.

"That is why we have to export. In terms of marketing, we do not see anyproblems," he said.

Asked why the government started this project, Chin replied that it was toput Malaysia on the world map in coming out with alternative fuels.

-- BERNAMA