MALAYSIA is blessed with abundant natural resources and a thriving agriculture sector, notably in palm oil production, making it a fortunate nation. As the world's second-largest producer of palm oil, Malaysia annually generates substantial biomass. However, historically, there has been minimal emphasis on repurposing this biomass, often leading to its utilization for low-value purposes. Consequently, biomass remains an underutilized resource in the country.

Therefore, the introduction of the National Biomass Action Plan (NBAP) 2023 – 2030 at the end of last year couldn't have come at a more opportune moment. It acts as a driving force not only to foster sustainable development, creating green wealth and promoting socioeconomic advancement, but also to address the target of achieving net-zero emissions.

Utilisation of Oil Palm Biomass

Presently, Malaysia boasts an estimated total of 5.67 million hectares of oil palm plantations, yielding over 90 million tonnes of dried palm biomass annually. Palm biomass encompasses various byproducts of oil palm cultivation, including oil palm fronds (OPF) and oil palm trunks (OPT) from plantation activities. Additionally, empty fruit bunches (EFB), palm kernel shells (PKS), palm oil mill effluent (POME), and palm kernel cakes (PKC) are generated from milling and kernel crushing operations, respectively.

While OPF are produced year-round during pruning activities, oil palm trunks (OPT) are mainly generated during the replanting of old palm trees, with approximately 5% of plantation areas undergoing replanting annually. Currently, both OPF and OPT are decomposed in situ and utilized as mulch, serving as organic fertilizer.

However, there is an opportunity to repurpose this biomass into higher-value products. They can be transformed into biocomposites, providing a sustainable alternative to traditional synthetic composites derived from fossil fuels. Additionally, they can be converted into biosugars, serving as a building block to produce bioethanol and bioplastics, among other applications. Many concerns have been raised regarding the potential impact of removing OPF and OPT for mulching on field nutrient content. However, IOI Plantation has demonstrated the feasibility of upgrading OPT into palm wood panels without adversely affecting plantation nutrient levels.

Similarly, EFB, typically utilized for mulching or as solid fuel for boilers, can be repurposed as feedstock to produce biosugars and microcrystalline cellulose through biochemical hydrolysis following pre-treatment. Moreover, EFB can be repurposed into fuel pellets and exported to overseas markets such as Japan. It is noteworthy that the Japanese Government has endorsed certified EFB fuel pellets, which adhere to the Malaysian Sustainable Palm Oil Chain of Custody for Oil Palm Biomass, as a green fuel since 2023.

On the other hand, PKS, commonly used as solid fuel for boilers, can now be upgraded to high-value graphite and graphene using established carbonization and activation technologies. These biobased activated carbons have the potential to replace coal-based activated carbon, resulting in reduced environmental impact.

The value of POME has been recognized, as it qualifies as a feedstock for double counting towards biodiesel mandates in Europe instead of being left in effluent ponds. Additionally, while the capture of methane from effluent ponds for biogas plant electricity generation is commendable, its value can be further enhanced by converting it into bio-compressed natural gas as a renewable transportation fuel.

PKC has traditionally been used as feed for dairy cattle, with its utilization for poultry limited due to its high fibre content. However, it is now feasible to upgrade PKC into poultry feed using a biosolution approach, where enzymes are employed to hydrolyse the fibre component of PKC.

Center for Biomass Collection and Processing

Considering the potential profitability of biomass, it's perplexing why no one has taken the initiative to tap into this underutilized resource. The closest possible explanation could be concerns regarding supply chain security. It's possible that biomass stakeholders are hesitant to commit to long-term contracts, or there is a lack of commitment from off-takers to purchase the high-value products generated.

Therefore, biomass hubs outlined in the NBAP could play a crucial role in facilitating a green supply chain for bioenergy and biochemicals, offering economies of scale and security in feedstock supply. Essentially, a biomass hub serves as a centralized location where biomass feedstocks are gathered, processed, and distributed for use in the production of high-value products. Collaborations between local biomass stakeholders and involvement from multinational corporations as investors, traders, or technology partners could accelerate the establishment of biomass hubs.

Moreover, it would be advantageous if the biomass hub possesses flexibility to ensure a favourable return on investment. For instance, stakeholders involved in EFB might solely focus on upgrading EFB into fibres for mattress production and exporting them overseas. However, if the market experiences a downturn, this could not only impact the payback period but also undermine investors’ confidence in future projects.

One potential example involves leveraging the strong ties between Malaysia and Brazil, the world's second-largest producer of fuel bioethanol, to establish a biomass hub that offers dual products: biosugars and bioethanol. While bioethanol produced could be exported to support Brazil's transition to renewable energy, biosugars could be utilized within the region, particularly in applications such as bioplastics.

Charting the Course Forward

Numerous financing mechanisms and investment incentives have been established to bolster the repurposing of biomass. For instance, the Green Technology Financing Scheme IV aims to address financing gaps, while Bank Negara Malaysia has introduced soft loan schemes such as the High Tech & Green Facility and Carbon Transition Facility to support the biomass circular business model. The Malaysia Biomass Industries Confederation, a non-profit organization dedicated to advancing the biomass industries in Malaysia, plays a pivotal role in navigating these business models and financial opportunities.

Realizing the potential of tapping into underutilized resources is paramount. If we can unlock this untapped resource, it will not only contribute billions in economic value but also create thousands of job opportunities for society. Ultimately, this endeavour will enhance the nation's efforts to reduce global greenhouse gas emissions and mitigate climate change.

** Eur Ing Hong Wai Onn, a chartered engineer and chartered environmentalist, is a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. He is also the author of “A Chemical Engineer in the Palm Oil Milling Industry”.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.