Sterling Biofuels to commission Sabah unit in May

31 October 2006 08:11  [Source: ICIS news]

SINGAPORE (ICIS news)--Commissioning of Sterling Biofuels’ 100,000 tonnes/year biodiesel unit in Lahad Datu Palm Oil Industrial Cluster, Sabah, will commence in May 2007, the Australian palm oil producer said on Tuesday.

It said that the plant’s layout and pre-engineering works have been completed and Ikatan, which provides some engineering services, has possession of the site and was progressing to start foundation works.

Mechanical completion is due on April 2007, followed by commissioning in May 2007 and commercial production in 1 July 2007, Sterling Biofuels added.

ICIS news has earlier reported that it has made a three-year contract for feedstock supply, which will be palm olein due to its premium quality.

The feedstock will be supplied from Lahad Datu Edible Oil’s (LEDO) refinery which is situated near the plant and the products have been contracted to be sold to international energy trader Masefield.

It sees itself as having a cost advantage of about $300/tonne, as estimated by Frost & Sullivan, over European producers who use rapeseed oil as feedstock.

By: Gina Myung
+65 6780 4359

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