National Biomass Strategy 2020: New Wealth Creation for Malaysia
Source: Agensi Inovasi Malaysia. Version 2.0, 2013 | Author: Agensi Inovasi Malaysia
Subject: Palm oil - Biomass - Malaysia

Intro:

Malaysia currently generates about 12 percent of GNI from the agriculture sector. In the process of creating this value, a significant amount of biomass is generated every year across a variety of crops, including but not limited to palm oil, rubber and rice. Within agriculture, by far the largest contributor to GNI is the palm oil sector, contributing about 8 percent or over RM 80 billion. The palm oil sector correspondingly generates the largest amount of biomass, estimated at 83 million dry tonnes in 2012. This is expected to increase to about 100 million dry tonnes by 2020, primarily driven by increases in yield. This is why the National Biomass Strategy 2020 had thus far focused on oil palm biomass. We are currently in the process of also extending the scope to include all types of biomass from sources such as rubber, wood and rice husk.


Abstract:

Malaysia currently generates about 12 percent of GNI from the agriculture sector.
In the process of creating this value, a significant amount of biomass is generated
every year across a variety of crops, including but not limited to palm oil, rubber
and rice. Within agriculture, by far the largest contributor to GNI is the palm oil
sector, contributing about 8 percent or over RM 80 billion. The palm oil sector
correspondingly generates the largest amount of biomass, estimated at 83 million
dry tonnes in 2012. This is expected to increase to about 100 million dry tonnes
by 2020, primarily driven by increases in yield. This is why the National Biomass
Strategy 2020 had thus far focused on oil palm biomass. We are currently in the
process of also extending the scope to include all types of biomass from sources
such as rubber, wood and rice husk.
The vast majority of the oil palm biomass being generated today is returned to
the field to release its nutrients and replenish the soil. The biomass returned to
the field as organic fertiliser plays an important role to ensure the sustainability
of fresh fruit bunch (FFB) yields. However, there is also the potential to utilise this
biomass for a variety of additional high value end-uses, including but not limited
to the production of wood products, pellets, bioenergy, bioethanol and biobased
chemicals. Due care and caution must be taken to balance the amount of biomass
that is left in the field for its nutrient value versus that utilised for higher valueadded
uses.
The different uses have very different risk-return profiles, given different
technological maturities, global demand potential and competitive dynamics. Not
surprisingly, the highest-value opportunities – bioethanol and biobased chemicals –
also carry the highest technological uncertainties and competitive risks. A portfolio
approach is therefore critical for the nation to ensure there is a combination of
short to medium-term investments into immediate opportunities and longer-term
investment in higher value-added opportunities.

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