Malaysia: a new fuel for the future using biomass from the palm industry

Malaysia harnesses biomass from the oil palm industry to develop advanced fuels, aiming for a green industrial revolution.

Share:

Biomasse Nouveau Carburant Malaisie

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

YB Liew Chin Tong, Deputy Minister of Investment, Trade and Industry, announced that Malaysia would focus on using the biomass created by the oil palm industry as a feedstock for advanced fuels. Speaking at an event organized by the Malaysian Investment Development Authority, the Minister stressed that biomass was seen as “a necessary catalyst for new high-value-added industries”.

Investments and challenges

Under the 12th Malaysia Plan, which runs from 2021 to 2025, Malaysia is looking to boost investment in palm oil by-products, designating biomass as a strategic sector. However, since 2019, investment in this sector has been fluctuating and has not reached the ambitious MR10 billion ($2.1 billion) target set by the plan. According to Tan Sri Sulaiman Mahbob, Chairman of the Malaysian Investment Authority, current investment in the sector amounts to MR 222.9 million.

Biomass use and potential

Malaysia produces around 90 million tons of solid biomass, such as empty fruit bunches, mesocarp fibers, kernel shells, fronds and tree trunks, when producing over 18 million tons of palm oil annually. Traditionally, these fibers and shells have been used as a source of energy in palm oil mills, but much of this solid biomass is now disposed of.

Biofuels and the ecological outlook

In recent years, demand for the liquid by-products of palm oil extraction, such as palm fatty acid distillate and palm oil mill effluent, has also increased, stimulated by European regulations favoring the use of residual feedstocks for biodiesel production. The FOB Malaysia price for palm oil mill effluent was valued at $795/tonne on May 2, down 3.6% over the month.
Malaysia’s initiative to promote the use of biomass from the oil palm industry as a source of renewable fuels marks a potential turning point towards a more sustainable and environmentally-friendly industry. This strategy could not only reduce dependence on fossil fuels, but also valorize waste from the palm industry, offering a double win for the economy and the environment.

The first phase of a green methanol project in Inner Mongolia has successfully completed biomass gasifier technical tests, marking a key milestone in Goldwind's industrial deployment.
Eni begins the transformation of its Priolo complex in Sicily with a 500,000-tonne biorefinery and a chemical plastic recycling plant, based on its proprietary Hoop® technology.
Waga Energy has launched a biomethane production unit in Davenport, Iowa, in partnership with the Scott County Waste Commission and Linwood Mining and Minerals, with an annual capacity exceeding 60 GWh.
German group Uniper has entered into a long-term supply deal with Five Bioenergy for biomethane produced in Spain, with deliveries scheduled to begin in 2027.
Hanoi is preparing a tax relief plan for biofuel producers to support domestic ethanol output ahead of the E10 mandate rollout planned for 2026.
Lesaffre and ENGIE Solutions have inaugurated a waste heat recovery unit in Marcq-en-Barœul, covering 70% of the site's thermal needs through two industrial heat pumps.
Biochar projects are drawing investor interest in India, but signing regulated offtake contracts has become essential to ensure market compliance and financial stability in the carbon sector.
EDF power solutions and Refocosta have inaugurated Colombia’s largest wood biomass power plant in Villanueva, with 30 MW of capacity and an annual output of 200 GWh injected into the national grid.
Copenhagen Infrastructure Partners invests in Nivalan Biokaasu, Finland’s largest bioLNG plant, with construction set to begin in late 2025 and operations scheduled for 2027.
The Netherlands' lower house voted to adopt RED III, including technical amendments, paving the way for timely transposition by January 1, 2026, in line with EU commitments.
Technip Energies has secured two engineering contracts from Repsol for an innovative waste-to-methanol facility in Tarragona, Spain, marking a strategic milestone in its partnership with Enerkem.
Energy producer CVE Biogaz launches a facility in Tarn capable of processing 21,500 tonnes of biowaste per year to produce biomethane injected into the local gas network.
Australia refocuses its national biomass plan on agriculture and forestry, excluding green hydrogen and urban waste from eligible feedstocks.
A bipartisan group of 47 lawmakers is calling on the US Environmental Protection Agency to maintain high biodiesel quotas to support local agriculture affected by falling exports to China.
Subsidised bio-LNG is gaining traction in European maritime transport, supported by strong demand and a narrowing price gap with unsubsidised volumes.
Renova and its partners have launched commercial operations at the Karatsu biomass power plant, converted to the FIP scheme to secure a long-term power purchase agreement.
The commercial court of Évry has initiated judicial reorganisation proceedings for Global Bioenergies, with no buyout offer submitted to date, leaving open the possibility of liquidation.
Irving Pulp & Paper secures a $660mn loan to modernise its Saint John pulp mill, with new facilities capable of generating up to 145 MW of exportable electricity.
Canadian supplier Greenlane recorded $7.9mn in third-quarter orders through its subsidiary Airdep, confirming growing demand for its biogas desulfurization systems in Europe and the Americas.
Spanish group Qualitas Energy inaugurated the Three Maids facility near Winchester, an anaerobic digestion plant able to produce 120 GWh of biomethane annually from agricultural waste.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.