Malaysia can save RM7bil by using biomass pellets as energy source, says DPM Fadillah

PUTRAJAYA: Malaysia is expected to save up to RM7bil by 2030 by using biomass pellets as a national energy source, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

Speaking to reporters after officiating at the National Biomass Conference 2023 here Thursday (Dec 7), Fadillah, who is also the Plantation and Commodities Minister, said this is because the use of biomass pellets produced from recycled organic waste can reduce dependence on imported coal.

"That’s an option, we can produce pellets abundantly and use them as green energy and no longer rely on coal,” he said, adding that this step is also taken to strengthen the country's biomass industry.

However, he said the matter being given emphasis right now is whether or not the country has sufficient resources to meet the demand for organic waste material to generate energy.

"So, what our Ministry (of Plantation and Commodities) is doing now is forest farming; we plant trees that can grow in five years, and then we harvest, including bamboo, which is effective for making charcoal,” he said.

At the event, Fadillah also launched the National Biomass Action Plan 2023-2030 (NBAP2030), witnessed by players in the biomass industry from five sectors: plantation, agriculture, livestock, forestry, and fisheries.

Fadillah said the NBAP2030 is expected to increase investments in the biomass industry to RM3 billion by 2030, creating over 3,000 job opportunities.

He said the action plan was developed based on the National Agrocommodity Policy (NAP) 2021-2030 document and relevant ministry and agency policies and aimed to boost the biomass industry, which is expected to contribute around RM17bil to the country’s gross domestic product (GDP), he said.

In line with the National Energy Transition Roadmap, Fadillah said that the NBAP2030 also targets co-firing projects in electricity generation stations, involving the combustion of a mixed fuel of coal and biomass pellets.

He said the action plan also aims at establishing biomass hubs to carry out centralised and systematic collection of biomass raw materials to drive the national biomass supply chain systematically and efficiently.

The hub is planned to be built in 20 locations, including Kuantan, Pahang, and Gua Musang, Kelantan, he said adding that the biomass sector will be a catalyst for the country's economy, opening up more job opportunities and contributing to increased household income, especially for small-scale agro-commodity farmers. - Bernama