SINGAPORE (ICIS)--US-based specialty chemicals firm Elevance Renewable Sciences said on Monday it is collaborating with Malaysian firm Genting Plantations to produce high-value palm oil derivatives in Sabah, Malaysia.
The agreement proposes the sale of Genting Plantations‘ 25% stake in Genting Integrated Biorefinery to Elevance Revewable Sciences Singapore, a wholly-owned subsidiary of Elevance Renewable Sciences, for Malaysian ringgit (M$) 72m ($22.6m), Genting Plantations said in a filing to the Malaysian bourse on 11 July.
Genting Integrated Biorefinery currently operates a 200,000 tonne/year biodiesel plant at Lahad Datu in Sabah.
The existing biodiesel plant will be transformed using Elevance’s proprietary metathesis technology, to produce 240,000 tonnes/year of renewable, high-performance olefins and specialty chemicals that can be used in multiple end-product applications, including lubricants, surfactants and detergents, according to Elevance.
The transformed metathesis biorefinery is expected to commence operation and production of these high-value palm oil derivatives by year 2017, according to Genting Plantations.
As part of the collaboration agreement, Genting Integrated Biorefinery has agreed to pay Elevance license and design fees, and Elevance will provide the technology, and technical and consulting services, the statement said.
Elevance will also be exclusively responsible for the sale of all specialty chemicals that are produced at the biorefinery, the US company said.
($1 = M$3.19)