Malaysia’s Felda Global Ventures Holdings Bhd’s (FGV) unit Felda Global Ventures Downstream expects to become the first company in the world to pioneer and produce high grade carbon nanotubes and graphene from by-products of crude palm oil and other hydrocarbons. It has tied up with UK-based Cambridge Nanosystems, a spin-out from the University of Cambridge, and may acquire 70% share equity of Cambridge Nanosystems.

FGV said the collaboration will undertake the production, manufacturing, marketing, selling and/or trading of high grade carbon nanotubes and graphene from crude palm oil and methane as feedstock. FGV will provide the raw material for the production of CNT and graphene whilst Carbon Nanosystems will provide proprietary technology to produce a series of CNT, produced via a nano-systems technology.

The Memorandum Of Understanding (MOU) sets out the understanding and intention of the parties during this interim exploratory period. According to the firm, “the MOU shall remain valid for six months or such extended period as agreed in writing by the parties.” It will make a full announcement of the proposed project, in the event the parties execute a definitive binding agreement.

FGV is part of the Felda Group, the world’s largest palm oil operator of about 950,000 ha of land. In 2012, Felda Group produced 3.3 million tonnes of crude palm oil, which accounts for 8% of the world’s CPO production.

It also produces oleochemicals through a subsidiary, Twin River Technologies US Inc (TRT US), in Massachusetts, in the US.