INTRODUCTION

Felda Global Ventures Holdings Berhad (FGV) is a Malaysias leading global

agribusiness and is the worlds largest producer of crude palm oil (CPO). They
have operations in more than 10 countries across Asia, North America and
Europe.
Felda Global Ventures Biotechnologies Sdn. Bhd. produces and markets
biodiesel. The company is based in Kuantan, Malaysia. Felda Global Ventures
Biotechnologies Sdn. Bhd. operates as a subsidiary of Felda Global Ventures
Downstream Sdn. Bhd.
In a statement released April 18, FGV Group President Dato Sabri Ahmad said that the
acquisition of the plant is in line with FGVs strategy to move further downstream in a bid to
protect its upstream business.
The biodiesel refinery will result in higher offtake of FGVs palm oil, especially high FFA
palm oil. In addition, it has the potential to produce raw materials for palm methyl ester
suffonate, crude or refined glycerin and palm fatty acid distillate apart from biodiesel. This
will enable us to meet the increasing demand by detergent companies for these essential
products.
The refinerys location is ideal as it is near to a refinery and oleochemical plant owned
by Felda Vegetable Oil products Sdn Bhd and Felda Procter Gamble respectivelyboth
companies within the FGV Group.
It is also close to FGVs plantations in Pahang, which produces plentiful palm oil supply.
Both FGVs palm oil and the biodiesel refinery are ISCC (International Sustainability & Carbon
Certification) compliant, a prerequisite for biodiesel usage in Europe.
The signing is a forward effort by FGV towards supporting the [Malaysian] governments
B5 and B10 biodiesel initiative to make biodiesel viable in view of growing demand in Europe
for compliance with greenhouse gas emission targets. As such, global demand for biodiesel is
estimated to reach up to 15 million tons (4.5 billion gallons) by 2020.
Being the largest CPO producer in the world, FGV can implement the use of B10 biofuel
now to help lift CPO prices as well as reduce national stockpile. Once B10 is implemented, it
can take out 1 million tons out of the 2.1 million stockpile and help stabilize CPO price. This
refinery in particular, is the only running East Coast [Malaysian] plant and therefore
strategically positioned to serve the East Coast [Malaysian] domestic market for biodiesel.
Related to the refinery acquisition, FGV also made a separate announcement to Bursa
Malaysia April 17 that FGV Downstream had incorporated a wholly owned subsidiary known as
FGV Biotechnologies Sdn Bhd in Malaysia. The new company will focus on biodiesel business
including production of various biodiesel products.

At the same ceremony, FGV also signed a management and technical services
agreement with MBSB related to the acquisition. Mission Biotechnologies Sdn. Bhd is a wholly
owned subsidiary of Mission NewEnergy Ltd.

PLANT DESCRIPTION
PLANT BACKGROUND

Incorporated in April 2013

A wholly owned subsidiary of FGV
Principal activity is manufacturing and marketing of Biodiesel (Palm Methyl
Ester PME) and related products (Refined Glycerine).

PLANT CAPACITY

250,000 tpa (Biodiesel)

Section

Capacity

Pre treatment

300 TPD

Transesterification

300 TPD

Glycerine refining

30 TPD

Raw Materials

CPO Crude Palm Oil

Process

Products

PRODUCTS

BIODIESEL HIGH GRADE

(250,000 tpa)
Glycerine (technical grade :
97.5% 25,000 tpa)

Products Specifications

Quality Control

Testing
parameter

Unit

Specification MS
2008

EN 14214 2008

Ester content

%(m/m)

Min 96.5

Min 96.5

Acid value

mgKOH/g

Max 0.5

Max 0.5

Density

Kg/m3

860 900

860 900

Water content

mg/kg

Max 500

Max 500

%(m/m)

Max 0.8

Max 0.8

%(m/m)

Max 0.2

Max 0.2

%(m/m)

Max 0.2

Max 0.2

Free glycerol

%(m/m)

Max 0.02

Max 0.02

Total glycerol

%(m/m)

Max 0.25

Max 0.25

Total
contamination

mg/kg

Max 24

Max 24

phosphorus

mg/kg

Max 4

Max 4

Flash point

oC

Min 120

Min 101

Oxidation stability

hours

Min 6

Min 6

Monoglyceride
content
Diglyceride
content
Triglyceride
content