Al Salam Bank-Bahrain (ASBB) announced the successful signing of a major, multi-faceted deal with six global strategic partners
to invest in a pioneering alternative energy project in Hong Kong.
Yousif Taqi, the Bank's Chief Executive Officer, said that ASB Biodiesel (Hong
Kong) Limited (the Joint Venture Company) will build and own a new plant
which produces biodiesel using mainly waste products. The plant will be located
in the Tseung Kwan O industrial area of Hong Kong. The 100,000 metric ton per
year facility will be the first of its kind in Asia and will aim to sell biodiesel –
which effectively substitutes regular fossil diesel - both locally and to European
markets, he clarified.
Traditionally, the production process of biodiesel reforms any variety of vegetable
oils such as rapeseed, corn, and soybean oils into a single specified automotive
fuel accepted by all diesel engines. However, in using virgin vegetable oils, this
process has the disadvantage of competing with human consumption and cooking
oil needs. There is also growing concern that demand for biodiesel from virgin
oils such as palm oil may lead to destruction of tropical rainforests.
Taqi pointed out that what sets the JVC apart from traditional biodiesel producers,
and further emphasizes ASBB’s environment-friendly approach, is that the new
plant will utilize waste products including: used cooking oil, waste animal fat and
grease trap waste (restaurant sewage) as some of the major feedstock components
for biodiesel production.
He clarified that there is a three-pronged environmental benefit; reducing harmful
vehicle emissions and global warming through the usage of biodiesel, productive
use of materials which often go to a landfill (thus reducing landfill needs) and
preservation of virgin vegetable oils for human consumption, thus addressing the
issue of rainforest destruction and escalating food prices.
Mr. Taqi said: “This is an innovative investment. It illustrates our bank’s strategy
to meet clients’ expectations for attractive investment opportunities that are
differentiated by sector and geography, and to ensure competitive returns to our
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shareholders. It also underlines our commitment to identify projects that have the
potential to add value to the community and positively impact the environment”.
Mr. Taqi also thanked the strategic partners for their trust and confidence placed
in Al Salam Bank-Bahrain, and for sharing their specialist industry knowledge
and market experience, which has proved invaluable in finalizing this groundbreaking