Investor Brooke Renewables will provide up to $1 billion (€800,000) over a five-year period to build a facility that converts inedible crops into green fuel.
Brooke Renewables, a venture comprising of Hock Lee Group, Brooke Asia and Biochemtex, will build a second-generation bioethanol and biochemical plant in Sarawak.
The 'Sarawak biomass hub' will be the first commercial facility in southeast Asia to produce second-generation biofuel from inedible crops.
Mark Rozario, CEO of the AIM agency, said the project may require as much as 20 billion Malaysian ringgit (€4.8 billion) in additional gross national income for the state and 21 billion ringgit in investment.
Beta Renewables will provide processing technology to the plant and Novozymes will supply enzymes.