Brooke Renewables, Beta Renewables Invest In Bioethanol Plant In Malaysia's Sarawak

By Niam Seet Wei and S. Joan Santani KUALA LUMPUR, Dec 9 (Bernama) -- Sarawak-based Brooke Renewables and Beta Renewables of Italy are investing between US$180 million and US$200 million to set up a 2G (second-generation) bioethanol plant in east Malaysian state Sarawak using biomass to meet the rising gobal demand. The plant, the first in the region, is expected to produce 60,000 tonnes of bioethanol annually, said senior vice-president of Strategic Impact Projects of Agensi Inovasi Malaysia (AIM), Timothy Ong Wye Ern. He said the plant is slated for completion in 2018, and the groundbreaking ceremony, to take place in 2017, would place the state in the regional forefront of the new biomass-based industry. Bioethanol is a form of quasi-renewable energy that can be produced from agricultural feedstocks. Ong said there is existing demand for bioethanol in the region from Thailand, the Philippines and China, with the demand expected to grow further in the future. "Thailand is producing and consuming bioethanol, but they are facing a supply shortage," he told Bernama here Tuesday on the sidelines of the International Biomass Conference Malaysia 2015 opened by International Trade and Industry Minister Mustapa Mohamed. Ong said the Philippines imports about 300,000 tonnes of bioethanol annually from Brazil, but Malaysia's strategic position would enable the company to penetrate the Philippines market once the plant is completed. The China market, he said, is an interesting one to tap into, amid concerns whether the supply would be sufficient to meet the needs of the world's second largest economy. He said a Chinese company is interested in purchasing bioethanol products from Malaysia, although he did not divulge further details. The company's long-term vision is to produce biochemicals and end-products, which will be a catalyst for the production of biofuels, said Ong. "Only six to seven countries, including Brazil, Italy and the United States, have commercial scale 2G bioethanol facilities, while Malaysia is the first in the region to have this plant," he added. Earlier at the event, Brooke Renewables chief executive officer Stanley Ng signed a memorandum of agreement (MoA) with Beta Renewables' business development director of Asia Pacific Pierluigi Piccotti for the utilisation of proprietary technology in the conversion of biomass to ethanol for the bioethanol production project. --BERNAMA