Johor Corp Bhd (JCorp) is at an advanced stage of negotiation with some parties linked to interests in Europe for the setting-up of a biodiesel plant in Johor, said chief executive officer Tan Sri Muhammad Ali Hashim. Muhammad Ali said the plant is most likely to be built in Pasir Gudang or Tanjung Langsat.
The company estimates an initial investment of US$20 million (US$1 = RM3.78) for the biodiesel venture. The planned plant may have a capacity of 100,000 tonnes [733,000 barrels annually. Muhammad Ali said JCorp is looking at biodiesel with a view of attracting the industry to Johor as it has strong advantages in terms of palm oil and downstream oleochemical activities. There is still ample land in Johor and the state offers highly developed infrastructure for industrial port concept, he added.