Kota Kinabalu: Sabah’s vision to tap into the billion-ringgit waste-to-wealth industry potentials in oil palm biomass is set for a huge take-off at the Palm Oil Industrial Cluster (POIC) in Lahad Datu.
This follows the signing of a Sales and Purchase Agreement for 19.5 acres at the POIC Lahad Datu for the production of Sustainable Aviation Fuel, biodiesel and carbon-based products such as carbon black, activated carbon and biochar.
AdvertisementCarbon black - derived from partially combusting oil palm waste. It is used as a pigment and colourant in rubber products, such as tyres.
Activated carbon is used to filter contaminants in air and water. It also has many pharmaceutical applications.
SPONSORED CONTENT Shell Sabah Deepwater Production Manager Earns Unsung Hero Award Daily Express had the opportunity to interview Musti whose story reflects the power of determination and resilience. Read more Biochar is made by burning biomass through pyrolysis. It is mainly used in agriculture to restore soil health, raise yield, remediating polluted soil.
Sabah-based Legenda Biomass Sdn Bhd, which has a sister company operating a waste management and recovery operations at POIC Lahad Datu, seeks to invest RM400 million, leading to a comprehensive utilisation of the estimated 20 million metric tonnes of biomass generated mainly by about 124 oil palm mills spread all over Sabah.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Legenda Biomass’s latest ventures are expected to catalyse an uptake in port operations at POIC Lahad Datu, as most of its products are for the export market.
POIC Lahad Datu, serviced by a container terminal, a liquid bulk terminal, a dry bulk terminal and a barge berth.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“Aside from taking the signing as a statement of confidence in POIC Lahad Datu, we see Legenda’s investment in biomass utilisation as a potential game-changer because it represents a major pivot in the oil palm value chain in Sabah,” said POIC Sabah Sdn Bhd Group Chief Executive Officer Datuk Fredian Gan, who signed the Sales and Purchase Agreement on behalf of the state-owned company, POIC.
Legenda Biomass Managing Director Datuk Tan Pek Chian signed on behalf of his company.
The signing held at the POIC Sabah office here, was witnessed by Sabah POIC chairman Datuk Seri Panglima Yong Teck Lee, members of the Board.
“Today marks a significant milestone for POIC, as several key agreements are being signed, paving the way for exciting developments ahead,” said Yong.
Meanwhile, Tan, whose Bumimas business group has waste management-related operations in Kota Kinabalu, Labuan and Lahad Datu, said his company desires to see wider compliance with the environmental, social and governance concept.
“We hope that our biomass centre at POIC Lahad Datu will provide a one-stop solution for biomass downstream processing and hopefully our entry will attract more investment to POIC Lahad Datu,” said Tan.
From oil palm plantations to oil palm processing mills, the industry is known for producing biomass in the form of trunks (when old trees are felled for replanting), fronds (cut in the process of harvesting oil palm fruits), empty fruit bunches, when fresh fruit bunches are stripped of their fruits, mesocarp fibres (waste left after oil is squeezed, and palm kernel shells (PKS) hard shells left after the oil palm kernels are squeezed off their oil.
Mills also produced POME (palm oil mill effluent) which has nutrients, residue oil but emits harmful methane.
Although the potential of oil palm biomass is well-established, its full utilisation remains elusive. PKS, with their high combustibility, are being exported for green power generation in Thailand and Japan, and some local mills use PKS for energy.
There are also limited applications for empty fruit bunches and fibres, as well as power generation through methane capture. However, overall biomass utilisation remains relatively low.
Sabah’s adoption of the Sabah Biomass Policy and the imposition of a 7.5 per cent export tax on biomass are expected to have a major bearing on sentiments and the direction of the biomass industry going forward.
The development of the biomass industry in Sabah has been hampered mainly by supply chain challenges, although its economic potential was recognised since the launch of the National Biomass Policy in 2011.
