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 ?xml:namespace>
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)
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,
($1 = M$3.37)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|