MANAMA: Al Salam Bank-Bahrain has 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.

ASB Biodiesel (Hong Kong), the joint venture company, will build and own a new plant which produces biodiesel using mainly waste products, bank chief executive Yousif Taqi said.

The plant will be located in the Tseung Kwan O industrial area of Hong Kong.

The 100,000 tonnes 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.

Mr Taqi pointed out that what sets the venture apart from traditional biodiesel producers is that the new plant will utilise 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.