InfoSAWIT, KUALA LUMPUR – Ministry of Plantation and Commodity Malaysia reported that Malaysian Palm Oil Board (MPOB) signed memorandum of understanding (MoU) to produce second generation palm oil biodiesel and biojet at Pengerang Maritime Industrial Park (PMIP) in Johor.
In the cooperation, MPOB will be in partnership with Pengerang Maritime Industries Sdn Bhd, Shanxi Construction Investment Group Co Ltd (SCIG) and Chinese Academy of Sciences' Institute of Coal Chemistry to produce palm oil biodiesel and biojet in Malaysia.
It is hoped that the bilateral cooperation could deliver good relationship between the two countries, namely China is the biggest palm oil importer from Malaysia,” Ministry of Plantation and Commodity Malaysia wrote as in the official statement.
The Ministry also mentioned, the collaboration would encourage certified palm oil production in Malaysian Sustainable Palm Oil (MSPO), as biofuel production material that will escalate MSPO acknowledge in the global markets.
“The investment could be seen as the commitment between Malaysia and China to explore latest advance technology which will involve palm oil products according to United Nations Conference of Parties (COP 26), to reduce carbon emission (to gross domestic product) about 45% in 2030 in Malaysia and carbon commitment in China that targets to get neutral carbon in 2060,” The Ministry noted.
The cooperation will be conducted by SCIG which is the State’s Enterprises belonging and operating by Shanxi Government in China. The plan is that the state will invest in hydro-treated vegetable oil (HVO) mill in Malaysia.
HVO is known as second generation biofuel that palm oil is treated to be hydrocarbon fuel. The development process in HVO mill is hoped to get foreign investment for about RM 3 billion by getting 800 workers in Malaysia.
The project will provide platform for both countries to escalate the technical cooperation to produce second generation biofuel in the future. HVO plant will be potential to produce sustainable aviation fuel which is famously known as biojet fuel. (T2)