28/11/2011 (AsiaOne) - The government is looking to lure foreign direct investments through public-private partnerships in biofuel facilities that will aim for the European market.

Hj Jamain Hj Julaihi, Deputy Permanent Secretary (Downstream and Power) at the Prime Minister's Office's Energy Department, told The Brunei Times recently that a few investors have already expressed interest in developing these facilities in Brunei, through the Brunei Economic Development Board.

"There is opportunity to set up these facilities in Brunei via FDI, in view of the increased demand in European countries," Hj Jamain said. "This will generate revenue for the country and create employment opportunities for Bruneians."

He explained that Brunei would aim for the European market as the European Union has mandated the reduction of carbon dioxide emissions by 80 per cent by 2050.

"They have also introduced a renewable energy directive for 2010, targeting for 10 per cent renewable fuel from renewable raw materials by 2020 on transport sector. So this has driven EU to review the diesel fuel usage in EU to be more of renewable sources," Hj Jamain said.

A recently completed study by the Centre for Strategic and Policy Studies (CSPS) on alternative and renewable energy for Brunei Darussalam via Powertech Lab, Canada identified the potential of setting up biofuel industries in Brunei, he said. This would involve the import of palm oil residue from Malaysia and Indonesia.

"This has been identified as one of the future alternative fuel for Brunei Darussalam," Hj Jamain said.

The deputy permanent secretary said Brunei has plans to introduce the 'Euro 4' fuel specification, in line with the plan of other Asean member countries.

Hj Jamain said this plan has been included in the design of the Zhejiang Hengyi Group refinery, which should be able to produce Euro 4 specifications "which are already quite stringent".

Zhejiang Hengyi Group is China's largest supplier of textile raw materials. It was given the green light to develop a US$2.5 billion (S$3.2 billion) oil refinery and aromatics cracker project at Pulau Muara Besar.

His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam consented to the establishment of the two-phase project on a 260-hectare site on Pulau Muara Besar.