Envergent Technologies had said in a statement from IIlinois, the United States on Thursday that it had been selected by Premium to perform the engineering design using its RTP technology for Premium's initial plant.
The bio-oil plant in Malaysia is expected to be initiated late this year and completed in early 2013.
Honeywell's Envergent Technologies managing director Dave Cepla said in a statement: "This project is a milestone using palm biomass particularly EFB to generate renewable heat and power.
"It also demonstrate how Envergent's technology can be used in different regions with a variety of feedstocks."
He said Envergent would perform a site assessment and identify strategies for integration for the facility into the existing palm oil industry in Malaysia.
It will also provide equipment scoping, engineering design, a constructability analysis and a plant construction schedule for the RTP unit in support of Premium's plant.
The RTP technology works by rapidly heating biomass at ambient pressure to generate high yields of a liquid biofuel, which can be used to power electric generators or burned in industrial burners and furnaces for heat.
Using the biofuel could help reduce greenhouse gas emissions and dependence on fossil fuels. The RTP is currently used in seven commercial biomass processing plants in the United States and Canada.
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