Kuala Lumpur: Felda Global Ventures Holdings Bhd (FGV) via its subsidiary, Felda Global Ventures Downstream Sdn Bhd (FGV Downstream) has signed an asset purchase agreement with Mission Biotechnologies Sdn Bhd (MBSB) to acquire the latter's asset including a biodiesel refinery at Kuantan Port for US$11.5 million (RM35 million).Apart from the 100,000-tonne per annum biodiesel refinery sited on a 2.42 hectare of prime land, the asset include a 16,000-tonne tank storage connected with import and export pipelines to a deep water jetty.
FGV said the plant is expected to be fully operational by July 1, 2013.
In a statement Thursday, FGV President Datuk Sabri Ahmad said the acquisition of the plant was in line with the company's strategy to move further downstream in a bid to protect its upstream business.
"The biodiesel refinery will result in higher off-take of FGV's palm oil especially high FFA (free fatty acids) palm oil.
"In addition, it has the potential to produce raw materials for palm methyl ester sulphonate, crude or refined glycerine and palm fatty acid distillate apart from biodiesel.
"This will enable us to meet the increasing demand by detergent companies for these essential products," he said.
Sabri said the signing is a forward effort by FGV towards supporting the government's B5 and B10 biodiesel initiative to make biodiesel viable in view of growing demand in Europe for compliance with Green House Gas emission targets.
"Being the largest crude palm oil (CPO) producer in the world, FGV can implement the use of B10 biofuel now to help lift CPO prices as well as reduce national stockpile.
"Once B10 is implemented, it can take out one million tonnes out of the 2.1 million stockpile and help stabilise CPO price," he said.
He added that the refinery is the only running East Coast plant, and therefore strategically positioned to serve the East Coast domestic market for biodiesel. - Bernama
