Benefuel finalises Malaysian biodiesel plant deal with FGV
Benefuel Inc., a US-headed biodiesel technology developer has announced that the joint venture (JV) formed by its subsidiary, Benefuel International Holdings S.A.R.L., and a subsidiary of Malaysia-headed Felda Global Ventures Sdn. Bhd. (FGV), the world's largest palm oil producer, has acquired a 250 000 tonnes-per-annum biodiesel plant in Kuantan Port, Malaysia. The JV will proceed as planned to retrofit the plant with Benefuel's ENSEL technology.
Announced in August 2014, the joint venture, named FGV Green Energy, also includes M2 Capital Sdn. Bhd., a subsidiary of Australia’s Mission NewEnergy. Retrofitting will begin immediately, and the plant is expected to be operational in 2016.
We are thrilled to partner with FGV and Mission NewEnergy on this project. FGV brings world-class expertise and ready access to palm oil feedstocks, and as the original builder of the Kuantan Port plant, Mission New Energy brings an intimate knowledge of the facility. The combination of partners and location – with easy access to feedstocks and domestic and international markets – is unmatched, said Rob Tripp, Chief Executive Officer of Benefuel.
In addition to working together in FGV Green Energy, Benefuel and FGV have entered into a further agreement to develop and operate additional biodiesel projects in Southeast Asia. The joint venture will look to establish production facilities in strategic locations in Southeast Asia that have strong access to feedstock and finished product markets.
After completing substantial technical and engineering work, we are excited to partner with Benefuel and Mission NewEnergy and take a major step toward our goal of tripling Felda’s biodiesel production by 2016. Benefuel’s ENSEL technology will allow us to process palm fatty acid distillate (PFAD) , a by-product of palm oil refining and position us as a low-cost producer of biodiesel in Malaysia and Southeast Asia, said Dato’ Wira Adam, Head of Downstream Processing of the Palm Downstream Cluster for FGV.
The plants, which will employ Benefuel’s ENSEL technology, will be operated by FGV.
FGV is yet another world-class company to recognize the value and disruptive nature of our ENSEL® technology. Our pipeline of attractive projects – both retrofit and greenfield – continues to grow. Kuantan Port will be the second facility to be retrofitted with our ENSEL technology. The first, our plant in Beatrice, Nebraska in the US, will be operational later this year, Tripp concluded.