Business

Wednesday April 29, 2009

Kuantan-based biodiesel firm gets ISCC nod

By Hanim Adnan


nem@thestar.com.my

KUALA LUMPUR: Biodiesel producer Mission Biotechnologies Sdn Bhd became the first Asian company to receive the International Sustainability and Carbon Certification (ISCC), thus securing export access into the European Union (EU).

A subsidiary of Australia-based Mission NewEnergy Ltd, Mission Biotechnologies has invested about RM90mil to operate an 100,000-tonne per year biodiesel plant in Kuantan.

“We are in the midst of constructing a new 250,000-tonne (per annum) biodiesel plant next to the existing plant, slotted for operation in June,” said Mission NewEnergy group managing director Nathan Mahalingam.

The group is investing about RM130mil for the new plant, which will be managed by another subsidiary Mission Biofuels Sdn Bhd.

“Our feedstock is sourced from sustainable palm oil produced by local plantations.

“To date, 100% of our biodiesel products are exported,” Nathan said after the certificate presentation by Germany’s Federal Ministry of Food, Agriculture and Consumer Protection director general Clemens Neumann on Tuesday.

The ISCC programme, which is managed by Meo Consultancy with the strong support from the German government, closely conforms to the EU’s latest renewable energy directive (RED) biofuel content, which encompasses regulations on carbon emission savings.

Meo partner Dr Norbett Schmitz said: “We have received a lot of applications from Asian plantation and biodiesel companies to attain the ISCC certification.”

The latest directive will be made into national laws in the 28 EU countries in the next 18 months.

“To a certain extent, the Roundtable on Sustainable Palm Oil (RSPO) certification does not fully meet the sustainable and environmental requirements of EU’s RED,” Schmitz said.

“It is not the intention of ISCC to just single out palm oil entire supply chain for certification, we are also looking at other crops like sugar, soybean, rapeseed and wheat.

“In future, the challenge for Malaysian bioenergy suppliers is having to show evidence that their products meet required carbon savings targets, environmental and social standards,” he said.

He said various voluntary bioenergy industry standards, certifications procedures and supply chain tracking systems were also being developed.

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