Natural Fuel delays Jurong biodiesel lines' start

20 February 2008 06:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Natural Fuel has indefinitely postponed starting up the biodiesel lines at its plant in Jurong Island, Singapore, due to soaring feedstock palm-oil prices, the company chairman Richard Selwood said on Wednesday.

Two of the Australian biodiesel producer’s three biodiesel lines in its Jurong plant have been built with the third to be ready by this week. But they will not be used, he said.

“They are mechanically ready, but will remain in limbo until further notice. The economics are such that it is just not viable to produce biodiesel at present. Palm oil is not a viable feedstock and it is dubious that it will be going forward,” he said.

“This has affected our investment terribly. Fortunately, 80% of refineries globally do not have glycerine refining facilities. There is a shortage of refined glycerine globally and we are able to take advantage of this now,” he said.

The company will instead capitalise on its glycerine refining capabilities.

Its three glycerine refining units at the Jurong plant will produce a total of 60,000 tonnes a year and will use jatropha-based crude glycerine as feedstock, imported from Madagascar, Selwood added.

“We have purchased crude glycerine to refine. There is a reasonable margin for profits,” he added.

Natural Fuel’s Jurong plant, touted to be the world’s biggest, had originally targeted 600,000 tonnes/year of commercial biodiesel production at the end of its first phase in end-2007 and up to 1.8m tonnes/year of biodiesel at the end of its third phase.

By: Arujnee J Ram
+65 6780 4359

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