Lestari Pasifik, Artur Group to develop advanced biofuels projects in Malaysia

In Malaysia, Lestari Pasifik Bhd has entered into a joint venture with Russia’s Artur Group to develop second-generation ethanol facilities in Malaysia and Indonesia with project financing from the Chinese government.

Exports will focus on the Chinese market, while the JV expects to reach 45% market share in Malaysia and Indonesia.

The plan sees 616 biorefineries built within the next five years, with 300 of them to be sited in Malaysia. The facilities, that will use palm oil empty fruit bunches as feedstock, will be built side-by-side to improve logistics. The first plant in Kilang Minyak Sawit will come online in November while plants in Johor, Sabah and Sarawak will also start this year.

The joint venture is planning an IPO in the first quarter of next year.