New Century Fermentation Research to build sago palm ethanol plant in Malaysia; projects yield of 1700 gallons per acre

January 25, 2008

In Japan, New Century Fermentation Research will build a small pilot plant in Malaysia that uses sago palm as an ethanol feedstock. The company says that it can produce up to 1700 gallons per acre from sago, more than any other existing ethanol feedstock. The company said that residual biomass from ethanol processing could be used for generation of heat and power. The company uses its proprietary â€œIshizaki processâ€, which uses the Zymomonas bacteria in fermentation.

In Malaysia, the traditional palm oil business was in the news this past week when the state of Sabah annoucned that it is seeking $304 million over 18 years from the Federal Government to assist in the development of its Palm Oil Industrial Cluster (POIC) in Lahad Datu.

The POIC is expected to generate 8,000 jobs and attract $2.7 billion in investment by 2025, with investors having injected more than $500 million since 2006. SPC Biodiesel and Global Biodiesel have come online with more than 300,000 tonnes in biodiesel capacity to date. South Korea’s Eco Frontier plans to invest more than $100 million in a combined heat-and-power (CHP) facility which will provide power for the POIC complex.

IC would provide equipment and financing, and would hold a 40% stake in the venture.

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Written by Jim Lane · Filed Under International, Producer News