Premium Renewable to Build RM124 Million Plant

PREMIUM

Renewable Energy (Malaysia) Sdn Bhd will spend US$40 million (RM124

million) to build a rapid thermal process (RTP) bio-oil plant near Lahad

Datu, Sabah in 2011.

Dubbed as first of its kind in Malaysia,

the plant will use oil palm biomass as feedstock in partnership with one

of the country’s largest plantation companies.

“Construction

of the RTP bio-oil plant is scheduled to start within the second quarter

of next year and be completed by 2012,” Premium Renewable managing

director Anand Selvaratnam said.

He said once fully operational

by 2015, the bio-oil plant project should help Premium Renewable

generate a revenue of about US$300 million (RM930 million).

Selvaratnam said the project is part of the initiatives laid out under

the National Key Economic Area (NKEA) of Malaysia’s Economic

Transformation Programme to commercialise second generation biofuels

using oil palm biomass.

The bio-oil initiative under the NKEA’s

palm oil lab is estimated to generate US$1 billion (RM3.1 billion) in

gross national income in 2020 and create 1,000 additional new jobs for

the country within 10 years.

“We aim to build and operate 15

bio-oil plants by 2015 for both green renewable power generation and

transportation fuel applications in Malaysia,” Selvaratnam said.

Investment for the bio-oil plant project will be funded by both

equities and bank borrowings with Premium Renewable holding a

significant majority stake in the bio-oil venture.

Selvaratnam

told this to reporters after signing an engineering services agreement

with US-based Envergent Technologies to undertake the engineering work

to build the bio-oil plant.

Also present were Premium Renewable

chairman Datuk Razman Hashim and Ensyn executive vice-president and

chief financial officer David Boulard.

Envergent is a joint-venture company between Premium Renewable’s partner, Ensyn Technologies Canada and UOP-Honeywell of US.

It will deploy Ensyn’s RTP technology globally as well as to develop

the complementary technology to convert bio oil into transportation

fuels.

Selvaratnam said Premium Renewable will use Ensyn’s

technology to convert oil palm biomass to bio oil for green renewable

power generation and renewable transformation fuels production such as

green gas, diesel and jet fuel.

“It is important that Malaysia

secures its energy needs as we can no longer depend solely on fossil

fuel in the future,” he said.

In the same time, Selvaratnam

said Premium Renewable is in talks with several other plantation players

to supply feedstock for its plants.

“Most of the talks are in final stages and we expect to seal deals with them in the near future,” he said.

Source : Business Times

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