By Ahmad Ibrahim

In transitioning to renewable electricity, apart from solar and mini hydro, biomass is a viable candidate. The country has abundant biomass, just waiting to be harnessed. The largest source is from the palm oil industry, the empty fruit bunches, EFBs, from the country’s over 400 palm oil mills.

The technology to convert EFBs to electricity is already well known. In fact palm oil mills have long been burning fibres and shells to generate high temperature steam to extract palm oil. Some of the steam are converted into electricity for their own mill use.

Palm oil mills are self-sufficient in energy. But the EFBs are not commonly used to fire the boilers. The standard practice has been to dispose the EFBs to the environment. Most end up choking the landfills.

Some plantation companies put back the EFBs on to the land for their fertiliser and mulching value. The negative side of such practice is the methane emitted from the decomposing EFBs. Methane is the more potent GHG.

Their release exacerbates the company’s ESG score. Not all mills have the luxury of spreading on land. The independent mills generally dispose their EFBs on to landfills, creating serious environmental concern.

Normally it does not make economic sense to burn EFBs for electricity. SEDA introduced the Feed-in-Tariff, FiT, scheme to incentivise the conversion. SEDA made available a limited quota for investors to bid and participate. Initially, the quota was bankable. This changed when banks consider them high risk.

Many quota owners quit because the low FiT rate proved unprofitable. The uncertain supply of the raw material, the EFBs, is a major risk. As capacity utilisation dropped, profitability became almost non-existent except for the more efficient operators. SEDA got wind of this and became concerned that their target renewable MegaWatt will fall short.

Under the recently unveiled FiT 2.0, the tariff is increased albeit not much. Industry players feel the new rate is not competitive. Neighbouring Thailand offers a higher rate which explain why some of our EFBs have crossed borders. A check with SEDA says their renewable energy fund is running out. So a higher rate is out of the question.

Biomass-to-electricity projects in Malaysia have struggled to achieve success due to challenges. Biomass supply, such as the EFBs, is tied to harvesting seasons, leading to inconsistent feedstock. Transporting bulky biomass materials from plantations to power plants is often costly.

Setting up biomass power plants involves significant capital expenditure. The cost of boilers, turbines, and processing systems is high. The feed-in tariffs (FiT) for biomass electricity under Malaysia’s Renewable Energy Act (2011) are often deemed insufficient to cover operational costs. Most plants are typically small-scale projects resulting in higher per-unit electricity costs.

Regulatory frameworks and incentives have not been consistent enough to attract large-scale private investment. Lengthy approval processes and unclear guidelines delay project implementation. Small-scale biomass power plants face challenges in connecting to the national grid due to technical and procedural hurdles.

Some technologies for biomass conversion, such as advanced gasification, are still underdeveloped. The variable quality and moisture content of biomass feedstock can cause operational inefficiencies and equipment wear.

Biomass power plants often require more maintenance compared to fossil fuel plants due to the corrosive and abrasive nature of biomass ash. Improperly managed biomass power plants can lead to air pollution and ash disposal issues, raising societal concerns.

Many stakeholders, including investors and local communities, are unaware of the benefits and opportunities associated with biomass energy. Malaysia’s reliance on cheap coal and natural gas has made it difficult for biomass electricity to compete on cost.

Some recommendations to improve include increasing the feed-in tariffs to more reasonable levels. Tax incentives and grants for biomass projects have been suggested. Not to mention improving transportation and storage facilities.

Many feel more R&D in biomass conversion technologies can improve efficiency. Collaboration between government, private sector, and research institutions to develop better technologies may be a good strategy. Stakeholders should be made aware about the economic and environmental benefits of biomass energy.

Notwithstanding, biomass remains a promising renewable energy resource in Malaysia. Addressing the barriers could unlock its potential to contribute significantly to the country’s energy mix, and finally deliver Net Zero.

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_{The author is an Associate Fellow, Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya. This article first appeared in TwentyTwo13}