KUALA LUMPUR: Malaysia’s oil palm industry has significant potential to unlock new economic value by utilising about 80 per cent of oil palm biomass that has traditionally been treated as waste.
Organising Committee Chairman of the 6th International Oil Palm Biomass Conference (IOPBC) 2026, Prof. Datuk Dr Ahmad Ibrahim, said the industry has long focused on oil production, which represents only about 20 per cent of the total oil palm biomass.
“The remaining 80 per cent is often regarded as waste and can create environmental challenges, including the accumulation of empty fruit bunches.
“However, recent research has shown that this waste holds tremendous potential to be transformed into high-value products,” he said during BERNAMA Radio’s Fokus 30 programme titled ‘New Opportunities in the Oil Palm Industry Through Biomass and Green Economy‘ today.
Ahmad explained that oil palm biomass extends beyond empty fruit bunches produced at mills, but also includes pruned fronds from plantations as well as oil palm trunks generated during replanting cycles after about 25 years.
According to him, technological advancements now enable palm trunks to be processed into timber products for the construction industry, while other biomass components can be converted into paper, biochemical products as alternatives to petrochemical materials, and graphite-based materials for electric vehicle (EV) batteries.
To accelerate the commercialisation of biomass-based products, Ahmad proposed that the government strengthen public procurement policies by becoming a major buyer of such products, particularly for use in the country’s housing sector.
He added that transitioning from a linear economic model (build, use and dispose) towards a circular economy through palm biomass utilisation is crucial to addressing global raw material depletion and supporting Malaysia’s target of achieving net-zero carbon emissions by 2050.
“Under a circular economy approach, products are designed to be more durable, recyclable and capable of reducing waste.
“This transformation not only creates additional returns for the industry but also generates direct economic spillover for smallholders through participation in the global carbon credit market, which currently reaches up to USD70 per tonne in Japan,” he said.
To further explore industry direction, challenges and efforts to build a more transparent biomass market ecosystem, the 6th International Oil Palm Biomass Conference 2026 will be held on July 14 and 15 at Cyberview Resort & Spa.
The conference, themed ‘Empowering Circular Economy and Sustainability’, is open to the public, SMEs, researchers, and local and international investors to foster strategic collaboration and innovation in the biomass sector. – BERNAMA
