Details of the Palm Oil, NKEA was determined by the Palm Oil, NKEA Laboratory that ran for over two months facilitated by the Performance Management & Delivery Unit (“PEMANDU”), Prime Minister’s Department, Malaysia with strong involvement by the private sector in order to determine projects that are of strategic value to ensure Malaysia becomes a high income nation by 2020.
The bio oil initiative under the Palm Oil, NKEA is estimated to generate US$1billion in Gross National Income (“GNI”) in 2020 and create 1,000 additional new jobs for Malaysia by 2020. The Palm Oil, NKEA has an indicative Key Performance Indicator (“KPI”) of 9 bio oil plants to be developed by 2015 and 29 bio oil plants by 2020 throughout Malaysia with an annual production of 1.1 million tonnes and 3.8 million tonnes of bio oil respectively. It also sets a commercialisation timeframe for the conversion of bio oil to transportation fuels by fourth quarter 2014 at the latest as the technology becomes available.
Premium a partner of Ensyn Technologies, Canada (“Ensyn”) will use Ensyn’s proven “Rapid Thermal Process” (“RTPTM”) technology to convert oil palm biomass to pyrolysis oil also known as bio oil for green renewable power generation and “drop-in” renewable transportation fuels production such as green gasoline, diesel and jet fuel.
Premium represented by its Managing Director, Anand Selvaratnam, today also entered into an Engineering Services Agreement with Envergent Technologies, USA (“Envergent”) represented by its Managing Director, Mark Reno to undertake the engineering work to build the first RTPTM bio oil plant in Malaysia.
Envergent is a joint venture company between Premium’s partner Ensyn and UOP-Honeywell, USA (“UOP”) a Honeywell, USA, company (“Honeywell”) to deploy Ensyn’s RTPTM technology globally as well as to develop the complementary technology to convert bio oil into transportation fuels.
The agreement signing ceremony today was witnessed by Eric Wagner, Vice President, Strategic Pursuits Management, Honeywell and David Boulard, Executive Vice President and Chief Financial Officer, Ensyn jointly with Premium’s Chairman and Deputy Chairman, Datuk Razman Hashim and Patrick Wee respectively.
Premium plans to build its first RTPTM bio oil plant using oil palm biomass as feedstock in partnership with one of Malaysia’s largest plantation player. Construction of the plant is planned to start in the second quarter of 2011.
Premium aims to build and operate 15 bio oil plants by 2015 for both green renewable power generation and transportation fuel applications in Malaysia.
Premium Renewable Energy (Malaysia) Sdn. Bhd. established in 2007, formed a partnership with Ensyn Technologies, Canada in 2008 which provides it exclusive rights to commercialise Ensyn’s proven RTPTM technology in Malaysia and other parts of the region for the production of bio oil for heat, power and transportation fuels.
Ensyn Technologies, Canada is a world leader for the production of bio oil from biomass and has more than 20 years of commercial experience with its RTPTM technology. It produces bio oil for various natural chemical and fuel products in seven commercial biomass plants in the US and Canada.
Envergent Technologies, USA established in 2009 is a joint venture between UOP, a Honeywell company and Ensyn, to provide globally a proven, practical way to convert biomass to bio oil for heat, power and transportation fuels. UOP-Honeywell and Ensyn will share technologies to enhance the RTPTM technology and also further upgraded bio oil to “drop-in” transportation fuels.