Biodiesel, Biofuels, Crude Palm Oil, Malaysia, Transportation

New Palm Biodiesel Plant in Malaysia

September 11, 2007 ( KUALA LUMPUR: Kumpulan Fima Bhd (KFima) expects its maiden palm biodiesel plant in North Port, Port Klang to commence production by end-October.Group managing director Ahmad Riza Basir said the group would initially stagger the production of palm biodiesel, given the significantly high feedstock cost, especially with crude palm oil (CPO) trading at RM2,400 per tonne currently.

The plant has a capacity to produce 60,000 tonnes of biodiesel and 30,000 tonnes of winter fuel per year.

KFima is one of three local companies which have joint ventures with Malaysian Oil Palm (MPOB) to set up biodiesel plants in Malaysia using the latter’s technology.

“We invested RM23mil for the plant while MPOB is financing about RM24mil. The actual plant cost can reach RM80mil but we have existing infrastructure like storage tanks and pipelines to facilitate the project,” Riza told reporters after the company’s AGM on Tuesday.

He said KFima was in the midst of sourcing alternative feedstock – palm kernel oil – for the production of palm kernel methyl ester to cater for the growing oleochemicals industry in Malaysia and overseas.


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