Malaysia opens second biofuels terminal
Last month, Malaysia's Sabah State government officially opened a first biofuels and palm oil processing hub called the 'Palm Oil Industrial Cluster' (POIC) in Malaysia's largest palm producing province, located on the island of Borneo (see earlier post). Today, Johor State opened a second bioterminal at the port of Tanjung Langsat. In total, Malaysia has granted 52 biodiesel production licences, amounting to a virtual production capacity of over five million tonnes per year (31 million barrels).
Prime Minister Datuk Seri Abdullah Ahmad Badawi who opened the biofuel hub with its 480ha industrial park sums up the advantages of the terminal:
- the port's strategic location at the centre of Asia's main shipping lanes
- the fact that the biofuels hub is located in Johor State, which is one of the largest palm producing regions in the country
- the abundance of highly skilled and lower skilled labor
- the existence of a well functioning logistical infrastructure
So far, the biofuel terminal has attracted a total investment of more than RM8.3 billion (€1.7billion/US$2.3 billion), including foreign direct investment, with the following companies having set up factories and facilities:
- Carotino Sdn Bhd, a wholly-owned subsidiary of the J.C. Chang Group, has constructed the first fully functional biodiesel plant. Carotino is the first company in the world to have successfully commercialised the technology for the production of low pour point palm biodiesel that can be used in cold northern climates (Europe, North America). The plant's production potential is 60,000 tons of tropical biodiesel and 30,000 tons of 'winterised' biodiesel.
- JCorp, which has invested a total of RM400 million (€84 million/US$109 million) of which RM160 million (€34 million/US$43 million) has been spent on port facilities, land development and other infrastructure support facilities. JCorp's subsidiary Kulim (M) Bhd is to build a biodiesel factory.
- Tanjung Langsat Port Bhd which is constructing a petroleum refinery, which will have a capacity to store 100,000 tonnes of diesel at its initial stage.
- A joint-venture between Felda-Johore Bulkers Sdn Bhd and JCorp, called Langsat Bulkers Sdn Bhd, will set-up a RM23 million (€4.9 million/US$6.2 million) tank to store biodiesel for the first of several phases of the project. The tank which was specially designed for handling cargo biodiesel has a capacity of 20,000 tons and will be constructed by a joint-venture firm between Kulim and German firm CremerOleo GmbH.
- IOI Corp Bhd which is constructing a biodiesel plant - no news about the total investment or capacity.
- Six foreign companies have shown interest in building biodiesel factories at the terminal.
- The Malaysian Palm Oil Board, which is a strategic partner in the project and which is building a knowledge infrastructure around the bioterminal.
More information:
- New Straits Times: Biofuel hub in Tanjung Langsat a great boost - 16 Aug 2006
- Bernama: Abdullah Stays Fullu Committed to Success of 9MP - 15 august 2006
- Tanjung Langsat Port: Kulim, IOI to set up biodiesel plants in Johor
- Tanjung Langsat Port: [Bahasa Melayu] Langsat Bulkers Sdn Bhd (LBSB) Bina Stor Simpan Biodiesel - joint-venture building a biodiesel storage tank
- Tanjung Langsat Port: [Bahasa Melayu] Tanjung Langsat hub serantau biofuel - introduction to the rationale behind the bioterminal
- Malaysian Palm Oil Board, homepage.
- The MPOB's biofuel policy, with information about 'winterized' palm biodiesel: Biofuels policy [*.pdf]
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