Cambodia's biofuel plant delayed

Cambodia’s only biofuel plant owned by MH Bio-Energy, will not reopen until December due to high feedstock costs, the company said. The factory located in Kandal province, which uses cassava to produce ethanol, started operations in November 2008 with an initial investment of US$30 million. However, the plant was shutdown in May as dry cassava chip prices rose to US$230 per ton, from US$178-181 per ton early in the year. Boeun Thy, chief of administration, the situation is about to change as the company prepares to harvest cassava from its own 8,000 hectare plantation in Kampong Speu province. Thailand banned cassava imports from Cambodia last year, thus, fewer farmers planted the crop, resulting in higher prices. (October 6, 2010)