PM: Malaysia to Be Positioned as Biomass Hub

by Nuradzimmah Daim (New Straits Times) Malaysia will step up efforts to use materials derived from commodity by-product to reduce waste and generate more revenue. Prime Minister Datuk Seri Ismail Sabri Yaakob said biomass sources had been identified to produce value-added products.

"Malaysia can emerge as a biomass hub, which is appropriate for the country's status as the second largest palm oil producer and biggest biomass industry contributor," he said at the launch of the 2022 Malaysia International Agricommodity Expo and Summit (MIACES) held at the Malaysia International Trade and Exhibition Centre today.

It is learnt that the Plantation Industries and Commodities Ministry is collecting data before undertaking a biomass plant project.

Ismail Sabri said the event would be the best platform for local agri-commodity industry players to expand into new export markets and promote products and technologies for palm oil, rubber, timber products, cocoa, pepper and kenaf.

He said the agri-commodity sector in Malaysia was expected to generate over RM300 billion in exports and the government would encourage foreign direct investment (FDI) to diversify high-value agri-commodity products.

Chinese government-owned companies, he said, would be working with local companies and the Malaysian Palm Oil Board (MPOB) to produce hydro-treated vegetable oil and sustainable aviation fuel involving FDI value of RM6 billion.

"The companies from China are Shanxi Construction Investment Group Co Ltd (SCIG) and Institute of Coal Chemistry, Chinese Academy of Sciences (ICC-CAS), while the Malaysian companies are Pengerang Maritime Industries Sdn Bhd (Benalec) and Sabah Oil and Gas Development Corporation (SOGDC).

"The collaboration will see 1,000 jobs created. The construction of the first HVO and SAF factories in the country is one of the initiatives to drive the palm oil sector towards being a high-tech and high-value industry," he said.

Two second generation biodiesel and biojet plants would be built in Johor and Sabah, covering a between 500 and 600 acres (202.3 to 242.8ha).