Business

Wednesday March 25, 2009

Felda to start oil palm JV in Brazil


KUALA LUMPUR: Felda Group, via a joint venture with Brazilian parties, will soon cultivate about 30,000ha to 100,000ha of oil palm in Manaus and Tefe near the Amazon River in Brazil.

Brazil’s Ambassador to Malaysia, Sergio Arruda, said the joint venture would start with 30,000ha whereby some 3,000ha to 5,000ha of oil palm will be cultivated in a year.

“We hope to emulate the successful smallholders’ scheme by Felda in Malaysia for the designated oil palm planting area in Brazil,” he told reporters after the opening of the first Asian Biofuel Roundtable 2009.

Arruda said Felda and its Brazilian partners would also be setting up a bi-national oil palm plantation and production plant, which would lead to downstream activities including a state-of-the-art biodiesel facility.

Meanwhile, Neste Oil Corp senior vice-president on sustainability Simo Honkanen said crude palm oil (CPO) suppliers to the European Union should focus on getting their products certified for sustainability due to the strict requirements by the European Commission.

He said CPO comprised about 80% to 90% of its NExBTL diesel – touted to be the world’s cleanest diesel – produced at Neste’s 170,000-tonne a year biofuel plant in Provoo. Mineral oils and animal fats made up the balance components.

Honkanen said: “Due to the EC requirements, Neste will need to source its palm oil from certified producers. So far, we are satisfied with the quality palm oil from Malaysia.”

Neste will set up another 170,000-tonne biofuel plant in Provoo as well as an 800,000-tonne biofuel plant each in Rotterdam and Singapore.

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