[[{“value”:”
WHEN we talk about ASEAN’s energy transition, solar panels and offshore wind turbines usually dominate the conversation. Yet another renewable source is quietly proving itself to be just as critical: biomass.
Across Malaysia and Indonesia, the palm oil industry produces millions of tonnes of palm kernel shells (PKS) every year.
For decades, this by-product was seen as little more than agricultural residue. Today, it is finding new life as a renewable substitute for coal in power generation, contributing to Asia’s decarbonisation journey.
The advantage of biomass lies in its circularity. As part of the plant-based carbon cycle, it offers near carbon-neutrality compared with fossil fuels.
By turning what was once considered waste into a usable energy feedstock, countries like Malaysia are extending the value chain of palm oil while reducing dependence on coal.
Bright prospect for biomass industry
Regional demand for biomass has expanded rapidly. According to industry data, Japan’s imports of palm kernel shells surpassed 670,000 tonnes in early 2025 with Malaysia among the key suppliers.
South Korea is also increasing biomass-fired generation capacity while across Southeast Asia, PKS now accounts for the majority of feedstock used for renewable power generation.
Analysts forecast the regional biomass market to grow at an annual rate exceeding 12% through 2030. This is evidence that this once-niche resource is becoming integral to Asia’s clean-energy mix.
Of course, challenges remain. Prices can fluctuate depending on global demand, currency movements and milling cycles.
But resilience comes from diversity: with more than 450 palm oil mills across Malaysia, supply continuity is underpinned by the scale of the agricultural sector itself.
Malaysia’s well-developed port network and industrial zones, including Port Klang, Pasir Gudang and Kuantan, play a crucial role in connecting ASEAN biomass producers to international buyers.
Sustainability is equally important. The credibility of biomass as a renewable fuel rests on responsible sourcing and certification.
Efforts such as the Roundtable on Sustainable Palm Oil (RSPO), the Malaysian Sustainable Palm Oil (MSPO) standard and international certification schemes like the Green Gold Label are vital in ensuring that PKS exports are aligned with no-deforestation principles and traceable supply chains.
created by dji camera
Biomass is the way to go
This also dovetails with Malaysia’s National Energy Transition Roadmap (NETR) which targets 70% renewable-energy capacity by 2050.
Biomass, particularly from agricultural and forestry residues, is highlighted in the roadmap as a key enabler for a just and inclusive transition.
It not only helps reduce emissions but also channels new income to rural communities, mill operators and logistics providers linked to the palm-oil industry.
The path to decarbonisation in ASEAN isn’t about abandoning existing industries. It’s about re-imagining them. Biomass shows that sustainability and economic value can grow together if we build it on accountability and long-term vision.”
In this way, biomass helps stabilise regional energy supply chains. Long-term contracts between ASEAN producers and regional buyers, especially in Japan, South Korea and some ASEAN countries, provide security of supply and support more predictable pricing.
Elridge Energy Holdings Bhd’s executive director/finance drector Salihudin Mohd Razali
This, in turn, encourages further investment into production and logistics infrastructure.
The broader point is this: ASEAN’s energy transition is not just about embracing new technologies but also about re-imagining what already exists. Biomass demonstrates how circularity, sustainability and trade can intersect to deliver real decarbonisation benefits.
Palm kernel shells may not command the same headlines as solar mega-projects or offshore wind farms. But in their own way, they are helping to shift the balance – from waste to renewable power and from agricultural by-product to an essential piece of the energy puzzle.
ASEAN has the resources, the infrastructure and the markets to make biomass a long-term pillar of its energy strategy. The opportunity now is to scale responsibly, thus ensuring that this hidden fuel of the energy transition delivers both climate impact and sustainable growth. – Oct 29, 2025
Salihudin Mohd Razali is Elridge Energy Holdings Bhd’s executive director/finance director.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
The post Biomass wealth: ASEAN’s overlooked catalyst in the race to renewable energy, net zero first appeared on Focus Malaysia.
“}]]
