Brooke Renewables agreed to invest as much as $1 billion over five years in Malaysia to build a facility that converts inedible crops into clean fuel.

Brooke Renewables, a venture between Hock Lee Group, Brooke Asia Ltd. and Biochemtex Agro Srl, is investing to build a second-generation bio-ethanol and bio-chemical plant in Sarawak, according to Agensi Inovasi Malaysia, set up by the government to facilitate innovation. 

The “Sarawak biomass hub” will be the first commercial facility in southeast Asia to produce second-generation biofuel made from inedible crops.

“This is not only a huge project but also one which has multiple and continuous benefits on the state and national economy,” said Mark Rozario, CEO of the AIM agency. 

It may involve as much as 20 billion Malaysian ringgit ($6 billion) in additional gross national income for the state, 21 billion ringgit in investment and more than 10,000 new green jobs created by 2023, he said in a statement.

First-generation biofuel made from edible crops has been blamed for helping push up food prices.

The facility is being built and will be operated by Brooke Renewables, with Beta Renewables providing processing technology and Novozymes supplying enzymes. 

Hock Lee and Biochemtex also agreed to develop a biomass plantation to grow crops such as napier grass specifically for the plant.