Sunday, January 23, 2011

Malaysia Biofuel Deal

Malaysia's Sime Darby, Japan's Mitsui Engineering sign biofuel deal


KUALA LUMPUR —
Malaysia’s Sime Darby Plantation is collaborating with Mitsui Engineering and Shipbuilding Co to construct and operate a bioethanol demonstration plant in Malaysia’s Selangor State. The plant will convert oil empty palm fruit branches, available year-round and in abundant supply, into bioethanol, according to a statement from Sime Darby Plantation, a unit of conglomerate Sime Darby Bhd.

The plant, to be built next to Sime Darby’s palm oil mill in Selangor, will have a processing capacity of 1.25 metric tons of empty fruit branches a day and will be used to collect operational data and confirm the technical feasibility of commercial-scale production of bioethanol.

‘‘We continue to research various ways to add value to all the by-products of the humble palm tree. The empty fruit branches can now move further up the value chain as a source of biofuel. Successful commercialization will also help in managing solid waste produced in oil palm estates,’’ Sime Darby Plantation Executive Vice President Franki Anthony Dass said in a statement.

Production of biofuel from nonfood feedstock such as the empty fruit branches and other oil palm biomass can also help to quell the ‘‘food versus fuel’’ debate.
There has been a growing concern that food commodities such as corn, oil palm and sugar cane have been diverted to ethanol production, causing food prices to soar.
But Sime Darby said using empty fruit branches will help to partially meet global fuel demand without jeopardizing food supply.