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China National Offshore Oil Corp. in Biodiesel Deal with Malaysia

Bernama. China National Offshore Oil Corp (CNOOC), China’s third-largest oil company, is partnering with a Malaysian firm to develop palm-oil biodiesel. CNOOC Oil base Group, a subsidiary of CNOOC, signed a Memorandum of Understanding (MoU) with Bio Sweet Sdn Bhd, a company which specializes in biotech and palm-oil biodiesel research and development.

Under the MoU, CNOOC will build a plant on Hainan Island (China) in 12 months with an annual capacity of 120,000 tonnes (36 million gallons US). It will also set up a joint venture called CNOOC (Malaysia) Biofuel Sdn Bhd with a view of an eventual listing in Malaysia.

Bio Sweet Sdn Bhd managing director A.K. Liew said more plants could be built in Shanghai and Guangzhou.

Malaysia’s Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui has suggested that CNOOC consider building production facilities in Malaysia as well.

Malaysia, the world’s largest palm oil producer, next year will introduce Envo Diesel, a B5 5% blend of palm oil biodiesel with petroleum diesel, for government vehicles. Malaysia has also developed a winter version of the fuel for use in cold weather.

The Malaysian government, along with Indonesia, is setting aside 6 million tonnes of its existing 15 million tonnes annual output of palm oil for biodiesel production. (Earlier post.)


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