Nexsol delays start of Singapore, Malaysia biodiesel plants

Biodiesel producer Nexsol will delay the start-up of its plants in Singapore and Malaysia due to construction delays and regulatory problems, a top official from Peter Cremer (Singapore) GmbH said. Germanys Peter Cremer owns 51% of Nexsol’s Singapore plant and 49% of the Malaysian plant, while its Malaysian partner Kulim BHD holds the remaining stakes. Nexsol’s US$20 million, 100,000-metric-ton-a-year palm oil-based plant in Jurong Island, Singapore, will be commissioned in October, six weeks later than originally planned, as construction isn’t complete. Output is expected to reach 100% in the first quarter of 2008, as it typically takes a few months for a plant to reach full capacity. Nexsol has also decided to put its US$12 million, 100,000-ton-a-year plant in Tanjung Langsat, Malaysia, on hold for the time being, as the Malaysian government has yet to make biodiesel blending with regular fuel compulsory. (September 11, 2007)