Friday, 4 May 2012

Two foreign companies to invest about RM3.5b in biomass plants

KUALA LUMPUR (May 4): The biomass sector in Malaysia is expected to attract two major foreign direct investments (FDI) worth about RM3.5 billion in the near future.

The Technical Advisor to The EU-Malaysia Biomass Sustainable Production Initiative (Biomass-SP) Datuk Leong Kin Mun said an investment of US$300 million (RM910 million), is expected to come from a US-based company to establish a biosugar plant.

He added that a Chinese company is seeking to invest RM2.5 billion in a biomass power plant.

"Both companies have expressed the desire to establish their plant here under the Biomass-SP and we are now working with all related parties to have the plans materialise.

"There is no specific timeframe for the projects to start as there are many issues to be addressed before the deal is sealed and this includes the sustainability of feedstock supply," Leong said.

It is understood that the US company is a leader in sustainable chemicals while the Chinese company is Wuhan Kaidi Holding Investment Co, through its unit, Wuhan Kaidi Electric Power Co.

Leong said Prime Minister Datuk Seri Najib Razak is expected to make an official announcement regarding the deals within the next month.

He was speaking to reporters at a media briefing, held in conjunction with the EU-Asia Biomass Best Practices and Business Partnering Conference 2012 here.

"We have arranged for the Chinese company to meet the state governments of Sabah, Terengganu and Perak. They now have to submit a proposal paper to the Sustainable Energy Development Authority (SEDA)," he said.

Meanwhile, at the same event, Biomass-SP chairman Tan Sri Ahmad Zaharudin Idrus said the inaugural EU-Asia Biomass Best Practices and Business Partnering Conference 2012, is expected to be attended by more than 500 delegates from 25 countries.

It will be held from May 7-10 at the Putra World Trade Centre (PWTC).

"More than 500 biomass stakeholders from Malaysia, the Asia Pacific and Europe have registered so far to participate. The conference will help promote the sharing of best practices as well as explore potential environmental and business collaborations on biomass development projects.

"It will highlight three major potentials for the conversion of biomass into high-value products, namely bio-energy, eco and agricultural products as well as high-value chemicals," Ahmad Zaharudin said. — Bernama

Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or for more details.
Related Posts Plugin for WordPress, Blogger...