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FGV set to triple biodiesel production by 2016

This is written by my colleague Zarina Zakariah.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) aims to be the world’s leader in palm biodiesel by tripling its production capacity to 350,000 tonnes a year by 2016.

FGV with 100,000 tonnes annual capacity is now the country’s largest biodiesel exporter following its US$47.5 million (or RM165.3 million) purchase of the Kuantan biodiesel plant.

“We’re looking to triple our capacity by 2016. That would include using new technologies that will make us the lowest cost producer in Malaysia. 

“That is our target,” said group president and chief executive officer Datuk Mohd Emir Mavani Abdullah, after launching B30 biodiesel fuel for three of the group’s whole fleet of trucks here yesterday.

The B30 blend comprises 30 per cent of palm oil-based methyl ester (PME) and 70 per cent regular diesel.

“By becoming the first Malaysian company to test a biodiesel blend that is more than four times higher than the B7 biodiesel mandated by the government, we’ve proven our willingness to go above and beyond national standards.”

“We plan to have all 450 of our trucks running on biodiesel by 2016,” said Wira Adam.

FGV palm downstream cluster head of processing Wira Adam said, “The price of crude oil has plummeted recently but we see it as an opportunity once the crude oil gains its momentum again. We are looking to expand capacity by using new technologies to become the lowest cost producer in Malaysia.” 

“Our biodiesel production can be boosted by tolling with several suppliers,” he said.

On market demand for biodiesel, Wira said Europe and the United States consume about 12 million and six million tonnes a year, respectively.

“Although the US is quite protective of its market compared with Europe, we hope to use the feedstock, which will be produced by our new plant to penetrate its market.

“We have not received any bad feedback from Europe and we will continue to supply biodiesel there,” Wira added.

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