MOSCOW (MRC) -- Malaysia and China's state-owned Shanxi Construction Investment Group on Monday signed a MOU to collaborate on the production of second-generation biodiesel and biojet fuel, reported Reuters.
Shanxi Construction plans to invest in a hydrogenated vegetable oil (HVO) plant, also known as second-generation biofuel, in Malaysia's southern state of Johor, Malaysia's commodities ministry said.
"The HVO plant has the potential to produce sustainable aviation fuels which is also known commonly as biojet fuels," the ministry said, adding there was increasing demand for HVO including from Europe.
Each HVO plant is expected to bring foreign investment worth 3 B ringgit (USD712.25 MM) and create nearly 800 jobs, it said.
The MOU is between the Malaysian Palm Oil Board, Pengerang Maritime Industries, Shanxi Construction, and the Institute of Coal Chemistry, Chinese Academy of Sciences.
Wang Chongjun, general manager of Shanxi's overseas department, said the firm is exploring development of a green diesel refinery and related storage facilities in Johor's Pengerang Maritime Industrial Park using China's technology and Malaysia's palm oil products.
The biodiesel and bio-jet fuel products will be used to meet the needs of the Chinese market but will also be exported to Europe and the United States, he said.
As MRC wrote before, a new biojet fuel developed by energy group Eni was used for the first time in mid-October, 2021, to power Alitalia successor ITA as part of plans to cut carbon footprints. The sustainable aviation fuel (SAF), made from waste products and residues, will be produced at Eni refineries in Taranto and, early next year, in Livorno, Eni said in a statement.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.