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The firm is investing US$130 million in the project, one of a series of plants in Australia and the United States, said Richard Selwood, managing director and chief executive officer of Natural Fuel.
600,000 tonnes is roughly 12,000 bpd.
"Singapore, with its strategic location, excellent logistics and experience in the petrochemical industry can play a pivotal role as a regional hub for the biofuel industry," he said at the ground-breaking ceremony on Singapore's Jurong Island.
He declined to give exact details on where it would sell the biodiesel, but highlighted countries like Japan, Korea, Taiwan, the U.S. West Coast and Europe.
Palm oil will be the base feedstock for its biodiesel plant in Singapore, but other vegetable oils such as soya and canola will supplement supply.
To secure the plant's feedstock supply, Natural Fuel has contracted ConAgra Food Inc. as a main source but has other contracts and joint ventures with food suppliers, he said.
The firm would be able to produce biodiesel that meets British and American standards, he said, allaying analysts' fears that Western nations' specifications may scupper the high export hopes of southeast Asian producers.
"We use German technology to produce our biodiesel, same in Australia," he added.
To further raise money, the firm will be listed on the Australian Stock Exchange (ASX) in December and was expected to be valued at A$112 million ($86.2 million), he said.
The Australian company will begin its first biodiesel production in Darwin, Australia this month. It has plans to start building two other biodiesel plants, one in Houston, Texas and another in Port Botany, Sydney, by 2007.
Australia's Natural Fuel Ltd, a group of renewable energy companies, will invest US$130 mln in building the world's largest biodiesel facility here, the company said.
It said the facility would be built in three phases. The first phase, due to be finished by the end of next year, will have the capacity to produce 600,000 tonnes of biodiesel per year. When the facility is fully completed, it will be able to produce up to 1.8 mln tonnes per year. Natural Fuel said the facility would also have an annual output of 60,000 tons of pharmaceutical-grade glycerine as a by-product, making it one of the world's largest producers of this substance.
"At the same time, Natural Fuel is in discussion with a global petrochemicals company for a strategic partnership that will accentuate the importance of biofuels as a future energy source," Natural Fuel said in a written statement.
It added that the partnership could include off-take, storage, blending and other mutually beneficial collaborative efforts to boost the importance of biofuels.
this will fire up the already fired up biofuel industry?? wilmar, noble will benefit?
Australian renewable energy firm Natural Fuel Ltd. will break ground on the world's largest multi-feedstock biodiesel plant in Singapore next week.
The plant will be built on Jurong Island, home to the bulk of its petrochemical processing facilities.
A spokeswoman for the company could not immediately confirm the production capacity, cost or date of completion of the plant.
Natural Fuel will look to South East Asia for most of its feedstock in the form of vegetable oil from soya, palm and canola.
The Australian company has plans to build three other biodiesel plants, one in Houston, Texas in the United States, and two in Australia, at East Arm Port, Darwin and Fort Botany, Sydney.