Malaysia plans to increase investment in waste-to-energy production

Malaysia’s Ministry of Plantation and Commodities on Tuesday proposed investing in new technologies and infrastructure to more efficiently convert waste from palm oil production into biomass energy.

On the sidelines of the Oils and Fat Conference 2024 which was organised by the Malaysian Oil Scientists and Technologists Association, Minister of Plantation and Commodities Johari Abdul Ghani said that waste industry materials like empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells could be burned and turned into energy.

The minister emphasised that palm oil mills generate effluent that could be converted into energy through methane capture. Integrating these organic materials into the agricultural cycle creates a closed-loop system, he said.

Malaysia, the world’s second largest producer of palm oil, just after Indonesia, has pledged to achieve net-zero by 2050. It has committed to retire coal-fired power plants by 2044 as part of its energy transition and climate change policy.

Malaysia is home to 446 palm oil mills, which could hypothetically generate up to 2,230 megawatt of electricity from renewable energy if each mill could produce up to five megawatt. A 2,000-megawatt power plant today would cost 8-9 billion MYR (1.85-2.08 billion USD).

Johari said that waste-to-energy production also addresses typical issues like waste segregation and supply adequacy, which often hinder recycling efforts. This approach is key to mitigating biodiversity loss and combating climate change while ensuring the long-term sustainability of the palm oil industry.

However, he noted that there are several challenges, including having transmission lines reach the palm oil mills to feed the electricity generated into the grid before it could be sold.