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Back You are here: Home Business Finance W2 Energy enters South East Asian clean fuel market with Malaysian acquisitions


W2 Energy enters South East Asian clean fuel market with Malaysian acquisitions

Green technology company W2 Energy is acquiring Malaysian biofuel business AM Biofuels.

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The companies have signed a memorandum of agreement by which W2 Energy will buy 51 percent of AM Biofuels from its shareholders.

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The acquisition is valued at $5,500,000 and is part of W2 Energy’s plans to expand their fuel business in South East Asia.

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AM Biofuels, located in Pasir Gudang Port of Johor Malaysia, owns and operates a 30,000-metric ton per year biodiesel plant. This plant is licensed under the Malaysian Palm Oil Council and was fully commissioned in end of 2010. It plans to produce 20,000 metric tons of palm biodiesel through 2013.

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W2 Energy’s acquisition of AM Biofuels comes at the heels of another memorandum of agreement for the purchase of 51 percent of Ecobound Fuel Production Systems from Ecobound International.

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This acquisition was valued at $2,500,000 and gives W2 Energy a platform by which it can distribute its clean fuel products throughout South East Asia.

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Ecobound Fuel Production Systems has a contract for storage of minimum 4,000 tons to a maximum 15,000 tons of petroleum products in Port Klang, Malaysia with a direct pipeline access to the port and shipping.

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“With AM Biofuels and Ecobound fuel production systems, W2 Energy is poised to enter the 'clean fuel market' of Asia,” said Michael McLaren, chief executive officer of W2 Energy.

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According to Mr. McLaren, Malaysia currently consumes about 50,000 barrels of fuel oils daily while the South East Asian region consumes about 500,000 barrels, making the area a good market for easily-accessible clean fuel.

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“W2 Energy will install and commission a #6 fuel oil replacement plant on the site and distribute the product through Ecobound Fuel Production Systems production license," he said.

W2 Energy develops renewable energy technologies and applies it to new generation power systems. Their plasma assisted biomass to energy plants produce green energy in both fuel (sulfur free diesel) and electricity. – EcoSeed Staff

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