Malaysia’s Perak State, Earth Biofuels, to develop 200 acre biofuel park; biodiesel plant, wastewater treatment among multiple facilities

In Malaysia, the government of Perak State announced the signing of an MOU with Earth Biofuel (Asia) to develop a 200 acre, $400 million Biofuel Integrated Environmental Park. The facility will include a wastewater treatment plant, a biomass co-generation electricity Plant, a methane biogas power plant and a biodiesel plant. The promoters project creation of 30,000 jobs. Construction will begin in 2008.

The announcement continues a surge of biofuels activity in Southeast Asia. Last week, Neste Oil announced a plan to construct the largest biodiesel plant in the world, in Singapore. The 430 Mgy plant would be completed by the end of 2010. The plant would use palm oil certified by the Roundtable on Sustainable Palm Oil (RSPO). Estimated project cost is $814 million.

The Malaysian government recently said it would begin to revoke biodiesel plant permits after only five of the 91 approved plants had been built.

The government believes that producers have not taken the permitting process seriously, while producers believe palm oil prices have to climb down to $780 per metric ton before plants area feasible. Palm oil is traded as high as $956 per metric ton.

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