Malaysia’s Palm Oil Waste Can Generate up to 1,000MW of Energy

Malaysia’s palm oil waste industry has the potential to generate up to 1,000 megawatts (MW) of renewable energy, according to Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.

He added that the country could unlock significant energy value by capturing and processing palm oil mill effluent (POME), which presents a viable pathway for the country’s transition towards a low-carbon economy.

“With 450 mills nationwide, if we take an average of 60 tonnes per hour for each mill, the waste material can produce almost 1,000MW of energy,” Johari told reporters after visiting Gas Malaysia Bhd’s (KL:GASMSIA) newly launched centralised biomethane injection station in Kluang.

“There is immense potential in the biomethane industry, especially from palm oil waste, that we can leverage to achieve our net-zero emissions target and drive a circular economy,” he added.

Also present at the event were Gas Malaysia chairman Tan Sri Wan Zulkiflee Wan Ariffin, and its president and group chief executive officer Ahmad Hashimi Abdul Manap.

Malaysia has committed to reducing methane emissions by 30% by 2030, and Johari sees the palm oil sector — historically under scrutiny for sustainability issues — as playing a central role in that ambition.

“This is one of the strategies that we have developed in the oil industry… We want to show the world that we are not just making commitments — we are doing what needs to be done to comply with those commitments,” he said.

The biomethane plant in Kluang, scheduled to be fully operational in the second half of 2025, will inject processed methane into Gas Malaysia’s Natural Gas Distribution System (NGDS), contributing to what Johari described as “a circular economy in the oil industry”.

He emphasised that Malaysia’s shift to cleaner energy must not come at the expense of forest conservation. The nation’s pledge is to maintain at least 50% forest cover — a figure currently at 54%.

“I told the industry players — no more deforestation. If they plant oil palm on deforested land, they can’t sell to the mill because it won’t be certified,” he said, adding that this is why adherence to the Malaysian Sustainable Palm Oil (MSPO) certification is critical.

He also encouraged players to increase yield through improved agricultural practices and better planting materials, rather than expanding land use.

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)

Source: The Edge