Itochu, Felda Palm JV to make oil palm-derived biomass

Itochu Corp. and its Malaysian partner Felda Palm Industries Sdn Bhd, will set up a joint venture called FNI Biofuel Sdn Bhd to produce solid biomass from oil palm waste in Malaysia in 2010. By the end of this year, the joint firm, to be owned 59% by Felda Palm Industries and 42% by Itochu, will start constructing a plant that can produce 24,000 tons of biomass a year from oil palm waste. Itochu plans to raise the joint venture’s annual production capacity to 120,000 tons in three to four years, expecting that the biomass will draw demand from other Japanese power suppliers as well because a Japanese law enforced in 2003 that requires electricity companies to use certain amounts of renewable energy. (November 24, 2009)