FGV group president and CEO Datuk Mohd Emir Mavani Abdullah says PME output will be increased to 350,000 tonnes by 2016.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) aims to be the world’s leader in biodiesel by tripling its production capacity to 350,000 tonnes a year by 2016.

The country’s largest biodiesel exporter will spend US$47.5 million (RM165.3 million) on its expansion plans at its Kuantan biodiesel plant.

This, according to its group president and chief executive officer, Datuk Mohd Emir Mavani Abdullah, will increase FGV’s output of palm methyl ester (PME) to 350,000 tonnes by 2016 from the current 100,000 tonnes annually.

The B30 blend comprises 30 per cent of palm oil-based methyl ester (PME) and 70 per cent diesel fuel.

Speaking to reporters after revealing FGV’s first successful use of B30 biodiesel blend on commercial transport vehicles, Mohd Emir said:

“By substantially reducing the proportion of diesel to power commercial diesel vehicles, the successful outcome of the test carries commercial and sustainability implications, not only for FGV but for all commercial fleet operators in Malaysia.

“By becoming the first Malaysian company to test a biodiesel blend that is more than four times higher than the B7 biodiesel mandated by the government shows our willingness to go above and beyond national standards.”

Retail pumps are selling B7 diesel, which may generate potential savings from the reduced consumption of diesel, while decreasing the dependence on fossil fuels.

FGV plans to introduce B100 fully biodiesel fuel in all its commercial vehicles in three years’.

Its palm downstream cluster head of processing Wira Adam said with the new capacity, FGV hopes to become the biggest producer in biodiesel.

“We are looking to expand capacity by using new technologies to become the lowest cost producer in Malaysia,” he said.

“Production volume does not necessarily come from production alone. It could be boosted by tolling, which we are in the midst of working out with several companies,” he said.

On market demand for biodiesel, Wira said Europe and the United States consume about 12 million and six million tonnes a year, respectively.

“Although the US is quite protective of its market compared with Europe, we hope to use the feedstock, which will be produced by our new plant to penetrate its market.

“We have not received any bad feedback from Europe and we will continue to supply biodiesel there,” he added.