Benefuel Announces Joint Venture With World’s Largest Palm Oil Producer to Aquire and Retrofit Malaysian Biodiesel Plant with Ensel® Technology
August 29, 2014
IRVING, TX, August 28, 2014 - Benefuel Inc. announced today that a joint venture formed by its subsidiary, Benefuel International Holdings S.A.R.L., and a subsidiary of Felda Global Ventures Sdn. Bhd. (FGV), the world’s largest crude palm oil producer, have entered into an agreement to acquire a 250,000 metric tonnes per year biodiesel plant in Kuantan Port, Malaysia and retrofit the plant with Benefuel’s ENSEL® technology. The joint venture also includes M2 Capital Sdn. Bhd., a subsidiary of Australia’s Mission NewEnergy, the current owner of the plant. The transaction is expected to close in the fourth quarter of 2014, and the plant is expected to be operational in late 2015.
"We are excited to team up with FGV and Mission NewEnergy to acquire and operate the Kuantan Port plant," said Rob Tripp, Chief Executive Officer of Benefuel. "This facility will use lower cost, high FFA feedstock, a by product of the crude palm oil milling and refining process.
"The Kuantan Port plant is a great opportunity," Tripp continued. "The facility is situated on a deep water port and logistically advantaged to serve both the Malaysian domestic market and International markets like Europe and the US. The facility is close to FGV’s plantations and palm oil refineries, ensuring a consistent and high quality feedstock supply. As a country, Malaysia has taken a leadership position in biodiesel initiatives (a five percent national blend mandate is already in place in most of the country and is to be implemented nationwide in December of this year and discussions on moving to a seven percent blend are underway) and we look forward to working with FGV to satisfy the region’s growing demand for biodiesel."
"Together with our project in Beatrice, Nebraska, Kuantan project will be the second facility to be retrofitted with our ENSEL® technology. With the establishment of strong equity and project partners like Koch Industries, Suncor Energy, ITOCHU and FGV, we are rapidly developing a strong project pipeline of opportunities, both on a retrofit and greenfield basis. Given our capital and operating cost advantages, and the growing global mandates for biodiesel blends, we expect to be busy for a long time. In the interim, we look forward to closing this transaction and for the joint venture becoming the low-cost producer of biodiesel in Malaysia."About Benefuel
Benefuel Inc. is a biodiesel process technology and production company based in Irving, Texas. The company has exclusive, global rights to next-generation technology for manufacturing biodiesel and bio-lubricants. Benefuel’s patented ENSEL® process allows the company to produce biodiesel at a substantially lower cost than conventional methods by using lower cost, high free fatty acid feedstocks and converting them efficiently into biodiesel and glycerin.About Felda Global Ventures
Based in Malaysia and with operations globally, FGV is a leading globally-integrated, diversified agri-business focused on the whole supply chain of palm oil and rubber, sugar manufacturing and downstream activities in oils and fats and oleo-chemicals.
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