Released February 17, 2006 | JOHANNESBURG, SOUTH AFRICA
en
Researched by Industrialinfo.com (Industrial Info Resources; Houston, Texas). At a time when many countries are ramping up targets for biodiesel fuel production, Malaysia is aiming to take 10% of the global market through 2010 with a two-plant project boost in capacity. In South Africa, Sasol (NYSE:SSL) (Johannesburg, South Africa), a world leader in synthetic fuels in the coal to liquid (CTL) and gas to liquid (GTL) fields, has signed an MoU (Memorandum of Understanding) with the countrys Central Energy Fund to conduct a feasibility study to test the viability of a major biodiesel project prior to making an investment.
A partnership between Natural Oleo Chemicals, a subsidiary of Kulim Bhd, the Malaysian diversified palm oil group and the Singapore branch of the German company Peter CremerOleo (Hamburg, Singapore, Cincinnati), will construct two new biodiesel plants. One will be at a 20-hectare site at the Tanjung Langsat Industrial Area in Johor Bahrua, Malaysia, and the other will be in the petrochemical hub on Singapores Jurong Island. In January, Kulim announced that it had entered into a sale and purchase agreement with state-owned parent company, JCorp (Johor Corporation), to acquire a 50-acre industrial site for $7 million.
The Malaysian and German companies have been working together since 1994. Kulim will hold 51% in the Malaysian plant and CremerOleo 51% in the Singapore plant. CremerOleo is one of the largest purchasers and distributors of fatty acids from Natural Oleo Chemicals.
The plants will have a combined capacity of 200,000 tons of methyl esters for biodiesel and glycerin by-product per annum split evenly between the two locations. Output will be directed to the exports market with the E.U. as the main target. The two plants are expected to generate about $133 million annually.
The investment in the Johor plant is estimated at $20 million and the Singapore plant at $21 million. Both plants are expected to be operational sometime in 2007. The Malaysian government is now drafting a national biofuel policy and has said that it would conduct trial runs using biodeisel on state-owned diesel-powered transport vehicles from three ministries - defense, transport and plantation. The year 2008 has been targeted for a mandatory change from diesel to biofuels.
Kulims Managing Director Ahamad Mohamad, said that in the E.U. biodiesel production almost doubled from 1.06 million tons in 2002 to 1.93 million tons (2.4 billion liters) in 2005.
"I believe that there is high enough demand for biodiesel from the West, primarily from European countries such as Germany and Italy. In addition, Turkey, South Korea, India, Colombia and China are also potential biodiesel users, " Ahamad said. For related news item see January 24, 2006 - Lurgi Rides Biofuel Boom with Multiple Projects and a Future in the $3.6 Billion EU Market Beckoning.
NatOleo is the worlds largest oleochemicals facility on a single site and currently exports 95% of its products to the U.S., Europe and China for use in the pharmaceutical and food industries. The recent expansion of the oleochemicals plant in Pasir Gudang boosted production to 380, 000 tons per annum from the previous level of 150,000 tons per annum.
The South African biodiesel feasibility study should be complete by the end of 2006. The proposed plant will require a feedstock of about 500,000 tons of soybeans to produce about 100,000 tons of biodesiel per annum, equivalent to 125 million liters of fuel. The manufacturing process of biodiesel will use soy oil in catalytic reaction with methanol
The national governments policy is to reduce dependence on crude oil imports and to promote the growing of biofuel producing crops by subsistence farmers and to move them up to commercial farming. A strategy will be presented towards the end of this year and the Minister of Minerals and Energy Lindiwe Hendricks, has said that biodiesel production should not become a heavily subsidized industry. Some industry observers feel that Sasol will require significant government support for the project before going ahead.
Sasol Nitros Managing Director Bernard Klingenberg said, "International experience has shown that many socio-economic benefits accrue from biofuel production, including job creation, foreign exchange savings, and strengthening of the rural agricultural economy."
Industrial Infos Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 123 ethanol plants currently in operation and 234 plants under development in North America. It also covers nine operational biodiesel plants and 38 biodiesel plants underdevelopment.
Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.
A partnership between Natural Oleo Chemicals, a subsidiary of Kulim Bhd, the Malaysian diversified palm oil group and the Singapore branch of the German company Peter CremerOleo (Hamburg, Singapore, Cincinnati), will construct two new biodiesel plants. One will be at a 20-hectare site at the Tanjung Langsat Industrial Area in Johor Bahrua, Malaysia, and the other will be in the petrochemical hub on Singapores Jurong Island. In January, Kulim announced that it had entered into a sale and purchase agreement with state-owned parent company, JCorp (Johor Corporation), to acquire a 50-acre industrial site for $7 million.
The Malaysian and German companies have been working together since 1994. Kulim will hold 51% in the Malaysian plant and CremerOleo 51% in the Singapore plant. CremerOleo is one of the largest purchasers and distributors of fatty acids from Natural Oleo Chemicals.
The plants will have a combined capacity of 200,000 tons of methyl esters for biodiesel and glycerin by-product per annum split evenly between the two locations. Output will be directed to the exports market with the E.U. as the main target. The two plants are expected to generate about $133 million annually.
The investment in the Johor plant is estimated at $20 million and the Singapore plant at $21 million. Both plants are expected to be operational sometime in 2007. The Malaysian government is now drafting a national biofuel policy and has said that it would conduct trial runs using biodeisel on state-owned diesel-powered transport vehicles from three ministries - defense, transport and plantation. The year 2008 has been targeted for a mandatory change from diesel to biofuels.
Kulims Managing Director Ahamad Mohamad, said that in the E.U. biodiesel production almost doubled from 1.06 million tons in 2002 to 1.93 million tons (2.4 billion liters) in 2005.
"I believe that there is high enough demand for biodiesel from the West, primarily from European countries such as Germany and Italy. In addition, Turkey, South Korea, India, Colombia and China are also potential biodiesel users, " Ahamad said. For related news item see January 24, 2006 - Lurgi Rides Biofuel Boom with Multiple Projects and a Future in the $3.6 Billion EU Market Beckoning.
NatOleo is the worlds largest oleochemicals facility on a single site and currently exports 95% of its products to the U.S., Europe and China for use in the pharmaceutical and food industries. The recent expansion of the oleochemicals plant in Pasir Gudang boosted production to 380, 000 tons per annum from the previous level of 150,000 tons per annum.
The South African biodiesel feasibility study should be complete by the end of 2006. The proposed plant will require a feedstock of about 500,000 tons of soybeans to produce about 100,000 tons of biodesiel per annum, equivalent to 125 million liters of fuel. The manufacturing process of biodiesel will use soy oil in catalytic reaction with methanol
The national governments policy is to reduce dependence on crude oil imports and to promote the growing of biofuel producing crops by subsistence farmers and to move them up to commercial farming. A strategy will be presented towards the end of this year and the Minister of Minerals and Energy Lindiwe Hendricks, has said that biodiesel production should not become a heavily subsidized industry. Some industry observers feel that Sasol will require significant government support for the project before going ahead.
Sasol Nitros Managing Director Bernard Klingenberg said, "International experience has shown that many socio-economic benefits accrue from biofuel production, including job creation, foreign exchange savings, and strengthening of the rural agricultural economy."
Industrial Infos Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 123 ethanol plants currently in operation and 234 plants under development in North America. It also covers nine operational biodiesel plants and 38 biodiesel plants underdevelopment.
Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.
