The proposed plant will employ cooking oil, supplied by MEEP, to produce biofuel and will require an investment of $40m.
Use of alternative feedstocks such as acid oil, crude palm oil and sunflower oil will also be possible at the plant being developed by Biomax’s technology.
Biomax’s existing plant in the South Indian city of Vishakapatnam generates 25,000 tons of biodiesel every month for the European market at a price of $1100 a ton.
MEEP, a diversified company with operations in waste management, supplies 3,000 tons of used cooking oil to the Indian plant each month.
Biomax Chairman M Ravinder told The Hindu Business Line, "We took this partnership forward to form the joint venture."
MEEP chairman Bader Bin Abdullah Bin Saud said that the company can ensure a yearly supply of up to 2.5 million tons for the Saudi plant depending on the requirement.
"After the first unit, we will be looking at setting up similar units across West Asia and North Africa region," Saud added.
The facility is expected to be operational by the end of 2013.
