KUALA LUMPUR: The government is poised to capitalise on the burgeoning biomass industry, which is projected to generate RM17bil in revenue by 2030, says Datuk Seri Johari Abdul Ghani.
The Plantation and Commodities Minister said the biomass sector offers significant opportunities not only for economic growth but also for advancing Malaysia’s commitment to global sustainability efforts.
He highlighted that the biomass industry, derived largely from the palm oil sector, will create substantial returns for the nation by utilising waste materials from palm oil trees that were previously considered useless.
He said the government’s initiative, driven through the Malaysian Palm Oil Board (MPOB), focuses on integrating these waste products back into the value chain, aligning with the principles of a circular economy and reducing greenhouse gas (GHG) emissions.
“By 2030, the biomass industry is expected to contribute RM17bil to the national economy, with an additional RM7bil in investments.
“This sector will also generate 33,000 new job opportunities, particularly in bio-pellet production, biomass energy generation, pulp and paper manufacturing, treated carbon industries, and biofertiliser production,” Johari said in the Dewan Rakyat on Monday (Oct 28).
Malaysia’s palm oil industry, a significant contributor to the nation’s agricultural economy, produces various by-products from the palm oil tree, including empty fruit bunches (EFB), mesocarp fibres, and palm kernel shells, he said.
These by-products, collectively known as palm oil biomass, hold immense potential for renewable energy generation, Johari added.
Johari also elaborated on the potential uses of palm oil waste materials. EFB, mesocarp fibre, and palm kernel shells can be used as biofuel to generate electricity in palm oil mills.
When burned in boilers, he said the steam generated powers turbines, creating electricity that can be reused within the mills, reducing reliance on conventional energy sources.
Additionally, he said the palm oil production process results in palm oil mill effluent (POME), a by-product that releases methane gas, a potent greenhouse gas.
According to him, palm oil mills are increasingly capturing biogas from POME, transforming it into a renewable energy source.
After the biogas is captured, Johari said the remaining waste can be further processed into biofertiliser, contributing to a more sustainable agricultural cycle.
Apart from energy production, Johari said palm oil biomass offers other agricultural benefits.
He said EFB and oil palm trunks can be used as mulch to improve soil quality, enhancing the sustainability of palm oil plantations.
Mulching with these by-products increases soil moisture retention and reduces the need for chemical fertilisers, further aligning with the circular economy principles.
“The circular economy approach in the palm oil sector not only helps reduce GHG emissions but also increases operational efficiency, leading to higher economic returns for the country.
“Through continuous research and development (R&D) initiatives led by the MPOB, the government is committed to turning palm oil waste into valuable resources that benefit both the environment and the economy.”
Johari also underscored the broader economic impact of the biomass industry, noting that its growth will create numerous employment opportunities, particularly for young people.
He said the RM7bil in projected investments will drive the establishment of various industries, including the bio-pellet and biomass energy sectors, which are expected to generate thousands of new jobs.
“The biomass industry’s growth is an opportunity to create sustainable, high-value jobs for the younger generation, while simultaneously reducing waste and promoting eco-friendly practices.
“The government will continue to support this industry, ensuring that it becomes a key driver of our economy by 2030,” Johari said.
