W2 Energy expands into Asian biofuels market
W2 Energy has signed a binding memorandum agreement to purchase 51% of Malayasia-based AM Biofuels.
The acquisition, totaled at $5.5 million (€4.1 million), will expand W2 Energy's fuel business in South East Asia as it continues to move forward a business plan focusing on production, blending and distribution of bio- and synthetic fuels.
AM Biodiesel's plant, licensed under the Malaysian Palm Oil Council, has the capacity of 30,000 tonnes of biodiesel production a year. The plant is a multi-feedstock technology based on the esterification process and plans to produce 20,000 tonnes of palm biodiesel in 2103.
‘We are now poised to enter the 'clean fuel market' of Asia, in which Malaysia consumes about 50,000 and Indonesia about 200,000 barrels per day of fuel oils,’ says W2 CEO Michael McLaren. ‘We will install and commission a number six fuel oil replacement plant on the site and distribute the product through Ecobound Fuel Production Systems production license.’