National Biomass Strategy 2020: New wealth creation for Malaysia’s biomass industry.

This National Biomass Strategy 2020 is a nationwide sectoral document aiming to create new industries and high-value jobs in Malaysia by utilizing agricultural biomass, particularly oil palm biomass, for high-value products which can create more and better jobs for Malaysians. The Strategy sets out the following strategic objectives (i) value creation, by mobilizing biomass to generate additional economic value and contribute to Malaysia’s gross national income (GNI); (ii) sustainability, by balancing the use of biomass for high-value products with its role in soil nutrient replenishment; (iii) technological advancement aiming to develop and implement advanced technologies for converting biomass into bioethanol, biobased chemicals, and other high-value products; (iv) collaboration, fostering partnerships among government agencies, private sector, and research institutions to achieve the Strategy’s goals. The objectives outlined in the Strategy shall be achieved by implementing the following (i) mobilize biomass of efficient collection systems for oil palm fronds and trunks, and ensure competitive costs for mobilizing biomass; (ii) investing in developing infrastructure for biomass processing, such as pellet plants and bioethanol production facilities; (iii) encourage partnerships, fostering collaboration among government agencies, private sector, and academic institutions to support biomass initiatives; (iv) provide incentives and implement policies to reduce risks and attract private investment in biomass-related industries.
To capitalize on biomass opportunities, Malaysia must establish appropriate structures, regulatory frameworks, and incentives, including the creation of Joint Venture (JV) clusters where co-located mill owners can share risks and benefits from downstream industries, with the government ensuring transparency and encouraging a long-term perspective for biomass owners. The formation of the Oil Palm Biomass Centre (OPBC) will accelerate technology development. Essential incentives support the pellet industry and promote biobased chemicals. Additionally, the government will offer tax incentives to stimulate the establishment of downstream industries and attract both local and foreign investments.