Dubai Group invests in southeast Asia's largest biodiesel plant

Dubai Group, a financial services company of Dubai Holding, has invested $49.5 million (€31.2 million) for approximately 30% of Malaysia's GBD Investment (GBDI), the largest biodiesel plant in southeast Asia.

The investment was made by Dubai Ventures, the equity investment company of Dubai Investment Group, a subsidiary of Dubai Group.

GBDI has completed construction and begun production of its 200,000 tonne biodiesel facility at Lahad Datu in the state of Sabah, Malaysia. The company is preparing to begin construction on its phase II facility, which will increase GBDI's biodiesel production capacity to 500,000 tonnes a year. GBD's plant has the ability to use both palm oil and jatropha as feedstock.

GBDI's facility will produce biodiesel and pharma-grade glycerine under the European (EN) and US (ASTM) standards for the Korean as well as global markets. GBD has already signed off-take agreements for all of its production.

'Biofuels and renewable energy are the preferred industry focus for Dubai Investment Group, and we intend to bring this technology to the geographic regions, especially the Middle East, where we currently have a presence,' Abdulhakeem Kamkar, CEO of Dubai Investment Group, says.

GBDI intends to use the proceeds from the recent placement for working capital in the Lahad Datu biodiesel plant and its investment into jatropha plantations in the Philippines. The plantation, which will cover up to 200,000 hectares, will have a potential annual production of 750,000 tonnes of crude jatropha oil.