THE government is set to capitalise on the burgeoning biomass industry, which is projected to generate RM17bil in revenue by 2030, according to the Plantation and Commodities Minister.
Datuk Seri Johari Abdul Ghani said the biomass sector offers significant opportunities for economic growth while reinforcing Malaysia’s commitment to global sustainability efforts.
He noted that much of this industry is rooted in the palm oil sector, which can create substantial returns by repurposing waste materials from oil palm trees that were previously deemed useless.
The initiative, driven through the Malaysian Palm Oil Board (MPOB), is focusing on reintegrating these waste products into the value chain, aligning with the principles of a circular economy and reducing greenhouse gas (GHG) emissions, said Johari.
“By 2030, the biomass industry is expected to contribute RM17bil to the national economy, along 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 stated in the Dewan Rakyat yesterday.
The palm oil industry, a significant contributor to Malaysia’s agricultural economy, produces a variety of by-products, including empty fruit bunches (EFB), mesocarp fibres and palm kernel shells.
Johari highlighted that these materials, collectively known as palm oil biomass, have immense potential for renewable energy generation.
He elaborated on the uses of the biomass, explaining that it can be converted into biofuel for electricity generation in palm oil mills.
When burned in boilers, the resulting steam powers turbines, generating electricity that can be reused within the mills, thereby reducing dependence on conventional energy sources.
Furthermore, Johari discussed the management of palm oil mill effluent (POME), a by-product that releases methane, a potent greenhouse gas.
He noted that palm oil mills are increasingly capturing biogas from POME and converting it into renewable energy.
The remaining waste can then be processed into biofertiliser, promoting a more sustainable agricultural cycle. In addition to energy production, Johari said that palm oil biomass has other agricultural benefits.
EFB and oil palm trunks can be used as mulch to enhance soil quality, which supports the sustainability of oil palm plantations.
Using these by-products for mulching improves soil moisture retention and reduces the need for chemical fertilisers, further aligning with 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,” Johari said.
“Through continuous research and development 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.
The projected RM7bil in investments will help establish various industries, including 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.
