Rotary Engineering: building out renewable diesel projects in Asia Pacific

By Nicholas Zeman | August 19, 2009
Asia is a hotbed for renewable energy activity and the engineering company building Neste Oil's renewable diesel plant in Tuas, Singapore, Rotary Engineering Ltd., is "looking to take great involvement in this sector," said Judy Kan, spokesperson for the engineering firm. The company announced in July the closing of a $36 million dollar deal to provide electrical and instrumentation works as well as mechanical, piping, painting and steel structures for Finnish Neste's $1.2 billion project in Tuas, Singapore.

"Their involvement in this space is not very long, but at the same time they are not new to these types of projects," Kan said. Rotary's venture into this area began in 2006 with its involvement in Itro Pte. Ltd., "a joint venture with Italy's Sofinter SpA Group, to build, operate and jointly-own an isotherm plant that treats hydrocarbon industrial waste products to generate steam energy to support the needs of the process plants," the company stated.

Rotary's experience with biodiesel-related projects includes building storage and other facilities for Oiltanking Odfjell Terminal Singapore Private Limited and a $24 million contract for Nexsol Pte. Ltd., in Singapore.

Providing engineering, procurement and construction services for the petrochemical and renewable sectors, other ongoing projects include a $745 million contract to build a tank farm at Jubail Saudi Arabia for Saudi Aramco Total Refining and Petrochemical Co. Rotary Group has more than 7,800 employees and a large portfolio of high-profile clients including Oiltanking, ExxonMobil Asia Pacific, Thai Tank Terminal Xiamen Paten and local company Hin Leong Trading.

The company's full-service portfolio features control room and other instrument installation, connection works, junction box erection, cable laying and telecommunication system construction.

Neste Oil's Tuas plant is scheduled for completion in 2010 and will have an annual capacity of 800,000 metric tons, "making it the world's largest facility producing diesel fuel from renewable feedstocks." Rotary said it expects to have the erection of steel structures, underground piping and painting works completed by March.

"It's always a pleasure when a client returns with repeat business," said Chia Kim Piow, chairman and managing director at Rotary, of Neste's Tuas project. "Over the past several years rotary has established itself as a key player in ecofriendly projects. These contracts serve to enhance Rotary's position as an important player in this exciting market."

Singapore remains a key market for Rotary and is actively expanding its presence in Malaysia, Thailand, Indonesia, India, Australia, China and the Middle East, countries looking to grow their renewable energy markets. "As their experience in this area grows, Rotary will be looking to take partial or whole ownership in some of these projects," Kan said.

So far this year, Rotary has reported revenue gains of 13 percent and an after tax profit of $4 million.

-Nicholas Zeman
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