Petaling Jaya: The government will strengthen cooperation with Tenga Nasial BHD (TNB) and Energy Commission (ST) to increase grid connectivity, ensure that renewable energy generated from palm oil industry can be effectively integrated into the national power system Is.
Plantation and Goods Minister Datuk Seri Johri Abdul Ghani said that the initiative is important for adaptation of Malaysia’s renewable energy capacity and aligns with TNB’s long -term investment strategy in permanent energy infrastructure.
“The government believes that palm oil by-products, such as mesocarp fiber, empty fruit bunches and palm kernel shells, represent an unused energy resources, which can be converted into biomass energy, which can be converted into energy, which the country’s renewers can be converted into energy Energy contributes significantly to goals.
“Beyond supporting Malaysia’s clean energy infection, renewable energy presents an important opportunity for foreign direct investment. It keeps Malaysia as an attractive destination for investors wishing to participate in a sustainable and change of change towards low-carbon energy solutions, ”he together with a press conference with 36th Palm and Lauric Outs Price Outlook Conference and Exhibition 2025 said in.
Johri insisted that the capacity within the Palm oil sector is sufficient, given that there are 450 palm oil mills in Malaysia.
“Every 60-ton-hour mill mill has the ability to generate 5 and 7 MW (megawatt) power. If effectively exploited, the total power generation from the industry may exceed 2,000mw, a significant additional for national energy supply.
Despite the opportunities, Johri said, one of the biggest challenges faced by the industry is a lack of grid connectivity, which prevents many mills from transmitting their extra energy.
“Currently, some palm oil mills produce surplus power, but are unable to supply it to the national grid due to the absence of the necessary infrastructure. To solve this, the government will work closely with TNB and ST to identify Palm oil mills that are ready for grid integration and facilitates the necessary investment to connect them.
“This step is important to ensure that renewable energy from the palm oil field can be fully used inste Get. “
Johri revealed that private sector interest in waste-to-energy investment is increasing, companies are ready to finance the development of energy infrastructure in the palm oil sector.
“There are already investors who have contacted us, saying that they are not necessarily interested in palm oil business, but are associated with palm oil waste in the energy sector. They see a strong investment ability to convert palm biomass into electricity. ,
Johri stated that replication is an important component in ensuring long -term stability and productivity of Malaysia’s Palm Oil Industry. It is necessary to increase the recurrence rate, he said, there is a need to promote yields, given the commitment to the country’s zero forest harvesting and without the expansion of land use.
In 2024, Johri said, Malaysia managed to recreate only 114,000 hectares, falling from 132,000 hectares in 2023.
“This is much lower than the recommended target of at least 4% or about 255,000 hectares per year. Failure to meet this goal can negatively affect the future of the industry, as aging palm trees resulted in low yield and efficiency. ,
To resolve these challenges, Johri said, the government is giving priority to the use of high-quality planting materials, ensuring that small-lessers receive a favorite Tanera Hybrid instead of low quality variants which get long-term long-term Can compromise yields.
He also underlined the importance of supporting smallholders, which manage about 1.5 million hectares of oil palm plantations, but often faces challenges due to scale and lack of knowledge. He said, “If the smalolder yield can be increased to only 5 metric tons per hectare, Malaysia can increase the crude palm oil production up to 1.5 million metric tons without the requirement of additional land,” he said.
