POIC Sabah CEO says politics, economics frustrating biomass-to-power in Malaysia

In Malaysia, POIC Sabah Sdn Bhd CEO Dr Pang Teck Wai said that there is sufficient palm fruit waste to provide power and steam to the complex of palm industries at POIC Lahad Datu, but that the lack of a carbon emissions regime removed the incentive to secure long-term supply of feedstock. He said that, for example, South Korea-based Eco Biomass Energy Sdn Bhd has had an immense trail securing feedstock for its porposed biomass plant at Lahad Datu.

Pang also pointed out delays and flaws in financing and the Clean Development Mechanism are retarding development. “There is no doubt that we should be able to generate renewable energy from palm oil mill effluent (POME) and empty fruit bunches (EFBs) but it needs to be policy-driven because there are just not enough incentives for oil palm players to consider renewable energy as part of their business plan. Neither is there sufficient deterrent in our laws to compel players to reduce their carbon footprints,” Pang added.

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