Kota Kinabalu: Sandakan has been designated for the development of the Palm Biomass Collection and Processing Centre (CPC), with an investment estimated at RM60 million.
Agriculture and Commodities Deputy Minister Datuk Chan Foong Hin said the centre is one of the initiatives under the National Biomass Action Plan 2023-2030 which was launched on Dec 7, 2023.
“Sandakan has been identified in the initial phase of the CPC which involves collaboration between Nextgreen Global Bhd and Kumpulan Sawit Kinabalu.
“The plan is designed to help the planning and development of the country’s biomass industry until 2030,” he told the Dewan Rakyat, Tuesday.
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Based on Malaysian Palm Oil Board (MPOB) records, in 2023, Sabah had the highest number of operational palm oil mills which is 125, and the second-highest oil palm cultivation area in Malaysia with 1.51 million hectares.
Sabah also has 10 palm kernel crushing factories and 11 operating refineries.
The Sandakan region which includes Kinabatangan and Sugut/Labuk in Beluran has an oil palm planting area of 742,304 hectares, with a replanting area of 34,016 hectares.
There are 65 operational palm oil mills in the region.
The estimated availability of oil palm biomass in the Sandakan region is 13.04 million tonnes consisting of palm fronds (8.19 million tonnes), palm trunks (2.53 million tonnes), empty bunches (0.87 million tonnes), mesocarp fibers (0.92 million tonnes) and palm kernel shells (0.53 million tonnes).
In addition, Chan said to promote the palm oil industry, the Palm Oil Industry Cluster (POIC) was established as one of the main hubs of the palm oil industry in Sabah, one in Lahad Datu and one in Sandakan.
“POIC has the potential to become a downstream industry hub for the production of products such as bottled cooking oil, margarine and fats as well as biochemical products, oleochemicals and other high-value products.
“Efforts to bring in investors for the oleochemical industry have also been carried out, among which the company, Gamalux Sdn Bhd, has set up a factory in Sabah to produce downstream products.
“It is hoped that this initiative will push the oil palm industry in Sabah, in particular, and Malaysia towards a more prosperous and sustainable future and can be enjoyed at various levels along the oil palm supply chain in Sabah,” he said.
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