Work Starts on Malaysia’s Largest Biodiesel Plant

By Sharen Kaur

AGRO Biotechnology Technovation (M) Sdn Bhd (ABT) is building the country’s largest biodiesal plant in Kuala Lukut, Port Dickson, Negri Sembilan, for RM900 million.

Construction of the plant, which is able to produce 250,000 tonnes of biodiesal per annum, has started and will be completed within 22 months.

Part of the plant’s success will come from a RM8 billion five- year off-take contract the company expects to sign with Habib Oil Ltd in June, said ABT chief executive officer and founder Wan Nur Arzrin Abd Rahman.

Habib Oil is an energy and petrochemical company with offices in Uganda, and closely linked to Tamoil East Africa Ltd, the national oil company of Libya.

“Habib Oil is keen to also buy 60 per cent of ABT. We are in discussions and expect things to materialise after signing the off- take contract,” Nur Arzrin said after signing an engineering service contract and procurement and construction with Spanish engineering firm, Mediterrania d’Enginyeria (MDE).

The signing was witnessed by Deputy Science, Technology and Innovation Minister Fadillah Yusof and Ambassador of Spain Jose R. Baraano.

MDE is the turnkey contractor involved in transfer of expertise and technology in building the biodiesal plant on a 16.8ha site in two phases.

The first phase will involve plant construction, an administration building, a water treatment plant, one TNB substation and a 5km pipeline jetty.

The second phase, which will commence concurrently, will offer supporting facilities.

According to Nur Arzrin, the building of the plant, which will cost RM300 million, will be funded by Banco Bilbao Vizcaya Argentaria, the eleventh largest private bank in the world.

“We are talking to Bank Pembangunan Malaysia to fund the local infrastructure. Production of biodiesal for export and local consumption will start in two years. Yields will flow in after two years or upon commissioning of the plant,” she added.

ABT was formed as a result of a science and strategic planning project research Nur Arzrin in 2006, who holds a Bachelor of Science, Biotechnology from University of Malaya.

The company has a licence from the Ministry of International Trade and Industry to produce biodiesal.

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