Carbon Capital and Japan Carbon Mercantile to build biodiesel, biogas plants in Malaysia

In Malaysia, Carbon Capital Corporation has established a joint venture with Japan Carbon Mercantile to build a multi-feedstock biodiesel plant in Tanjung Manis in Sarawak and a biogas facility in Sarawak under the Clean Development Mechanism. The $308 million project will use jatropha and palm oil as feedstocks.

The announcement is the latest in a series of major investments in Malaysian palm oil and biofuels.

IJM Plantations will invest $185 million to develop land in East Kalimantan for palm oil production. The group has increased its plantations to 60,000 hectares in the past two years, and will add another 30,000 hectares with this development. 27,000 hectares are currently planted. The company is constructing a biodiesel plant in Sabah, and said that they are proceeding with construction and installation of a first processing module with 9 Mgy capacity.

The Sabah state Land Development Board general manager said that Nihon Biotech, Kelana Stabil and TKM Resources have indicated that they would invest up to RM 300 million in jatropha cultivation and would purchase the fuel for export to the US, Japan and South Korea.

Sabah also announced this month that it would seek $304 million over 18 years from the Federal Government to assist in the development of its Palm Oil Industrial Cluster (POIC) in Lahad Datu.

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