Malaysian biodiesel producer Felda Global Ventures is acquiring another biodiesel plant as it continues to expand its operations.
Felda, through its subsidiary Felda Global Ventures Downstream, will jointly acquire the 250,000 t/yr (5,100 b/d) plant located in Kuantan in east peninsular Malaysia with its partners M2 Capital and Benefuel International. The plant was originally owned by Australia-listed producer Mission Biofuels.
This is Felda's second plant acquisition after it bought a plant from Mission also on the same site. The latest acquisition is expected to be finalised by this year's fourth quarter, with plant operational towards the end of 2015.
Malaysian biodiesel spot trade and exports to Europe have steadily increased this year, with Indonesian producers focusing instead on domestic market following the EU's imposition of anti-dumping duties on Indonesian biodiesel.
Malaysia's domestic biodiesel mandate may only see full implementation of its 5pc biodiesel blend (B5) at the end of this year because of slow uptake, supply shortages and rising subsidy costs for the government. The B5 mandate was to have been implemented nationwide in July. But delays have continued, with palm methyl ester blending facilities in Sabah and Sarawak states on Malaysian Borneo still uncompleted.
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