Bernama.com (Malaysian
National News Agency) , 24 July 2006 20:07 PM
China No.3 Oil Producer
Moves Into Biodiesel With M'sian Firm
By Tham Choy Lin
BEIJING, July 24 (Bernama) -- China's third largest oil
company, China National Offshore Oil Corp (CNOOC) has
inked a memorandum of understanding (MoU) with a Malaysian
firm to develop palm oil-based biodiesel in a shift towards
renewable energy sources.
The pact was signed between its subsidiary, CNOOC Oil
Base Group Ltd, with Bio Sweet Sdn Bhd which specialises
in biotech and palm diesel research and development,
here Monday.
Under the MoU, CNOOC will build a plant in Hainan Island
in 12 months with a capacity of 120,000 tonnes. It will
also set up a joint venture called CNOOC (Malaysia)
Biofuel Sdn Bhd with a view of a listing in Malaysia
eventually, Bio Sweet Sdn Bhd managing director A.K.
Liew said.
Bio Sweet Sdn Bhd is based in Technology Park Malaysia
in Kuala Lumpur.
Liew said more plants could be built in Shanghai and
Guangzhou.
The agreement was inked by Liew and Xu Yugao, chief
financial officer of CNOOC Oil Base Group Ltd, and witnessed
by Malaysia's Plantation Industries and Commodities
Minister Datuk Peter Chin Fah Kui.
Chin also met CNOOC President Fu Chengyu before the
signing ceremony at corporation's new headquarters.
Chin has suggested that CNOOC consider building production
facilities in Malaysia which can currently produce 60,000
tonnes of oil palm-based biodiesel that meets European
standards.
Malaysia has also developed a winter version of the
fuel for use in cold weather.
Chin said the Malaysian government has decided to set
aside 6 million tonnes of its existing 15 million tonnes
annual output for the biodiesel industry which has gained
greater momentum in the wake of rising crude petroleum
prices.
Malaysia, the world's largest palm oil producer, has
embarked on developing Envo Diesel, biofuel of five
percent processed palm oil and 95 percent petroleum
diesel to be introduced next year for government vehicles.
-- BERNAMA
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