The palm oil industry has brought great economic benefits to Malaysia. The current production of 19 million metric tons (Mmtons) of crude palm oil (CPO) adds 8% to the country’s gross national income (GNI). In addition, the oil palm estates produce an estimated 80 Mmtons of dry weight biomass. This includes trunks, fronds, empty fruit bunches and other biomass fractions. These resources present attractive raw materials for the newly emerging and potentially profitable renewable energy and biobased chemicals markets. The perennial nature of the oil palm biomass supply base and the available volumes are strong assets to tap into these new markets. This paper describes the potential of the biomass markets and highlights some of the answers to the challenges these markets currently present to the oil palm biomass industry.
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