March 16, 2010

Satake Chosen to Build Biomass Fuel Manufacturing Plant in Malaysia

Commercial Production of Solid Fuel from Palm Kernel Husks: a World's First

Palm Kernels (Raw Material of Palm Oil)

Residues after expressing oils (Palm Nut Shell：Empty Fruit Bunch)

Solid Biomass Fuel (EFB Pellet)

On February 24, 2010, Satake Corporation (CEO: Toshiko Satake) and FNI Biofuel Sdn. Bhd. finalized a contract for a solid biomass fuel manufacturing plant which runs on palm kernel husks. FNI Biofuel Sdn. Bhd. is a joint venture of Itochu Corporation and the world's largest palm oil company, FELDA Palm Industries Sdn. Bhd.

This plant is scheduled to be constructed in Johor, Malaysia and will produce 24,000 tons of solid biomass fuel annually using residue from the palm oil extraction process. (Palm nut husks = Empty Fruit Bunch, hereinafter, EFB)

Satake will design the entire production process: from receiving the unprocessed EFB, and drying, to grinding and pelletizing the solid biomass fuel. Satake will construct the plant and supply and install all equipment.

A large amount of the EFB produced during the palm oil manufacturing process is high in fiber and moisture and has been difficult to use efficiently.

Last November, Itochu Corporation and FELDA Palm Industries Sdn. Bhd. established a joint venture company, FNI Biofuel Sdn. Bhd., to sell solid biomass fuel to power companies to use as fuel in industrial boilers.

This project is the world's first to use solid biomass fuel produced from EFB for commercial purposes. In addition to increasing the profitability of its business partners, this project harnesses a new energy source and will reduce greenhouse gases.

Satake continues to work proactively on environmentally related projects including biomass gasification power plants, ethanol plants, and compost facilities with the hope of contributing to environmental protection and the efficient use of resources.

* Please note descriptions in news releases are accurate as of the date of release and may differ from the most up-to-date information.