Nexsol commissioning Singapore biodiesel plant

28 November 2007 06:15  [Source: ICIS news]

SINGAPORE (ICIS news)--Nexsol, the joint venture company between Peter Cremer and Kulim of Malaysia, is in the process of commissioning its 100,000 tonne/year biodiesel facility at Jurong Island, Singapore, a source close to the company said on Wednesday.

The plant had been ready earlier this quarter and the company is now in the commissioning phase with on-spec production expected in December, he added.

Despite the start-up, the economics of biodeisel production in Asia remain negative amid the surge in feedstock crude palm oil (CPO) prices, the source added.

CPO third month futures were trading at Malaysian ringgit (M$) 2,985/tonne, around $885/tonne. The minimum prices required by biodiesel sellers was $1,000/tonne FOB (free on board) SE Asia.

But buyers of biodiesel wanted biodiesel at the same price, around $890-920/tonne FOB SE Asia, according to regional traders.

The buy-sell gap had been hard to close despite surging crude oil values as palm oil price increases have more than made up for crude oil, said biodiesel sellers.

Nexsol is also building another 100,000 tonne/year biodiesel plant in Tanjung Langsat, Johor, Malaysia.

($1 = M$3.37)

By: Anu Agarwal
+65 6780 4359

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