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Kota Kinabalu: Sabah's vision to tap into the billion-ringgit waste-to-wealth industry potentials in oil palm biomass is set for a huge take-off at the POIC Lahad Datu industrial park.

This follows the signing of a sale-and-purchase agreement for a 19.5-acre land at POIC Lahad Datu for the production of sustainable aviation fuel, biodiesel, and carbon-based products such as carbon black, activated carbon and biochar, said a statement. 

Sabah-based Legenda Biomass Sdn Bhd, which has a sister company operating waste management and recovery operations at POIC Lahad Datu, sought to invest RM400 million leading to a comprehensive utilisation of the estimated 20 million metric tonnes of biomass generated mainly by about 124 oil palm mills spread all over Sabah.

From oil palm plantations to oil palm processing mills, the industry is known for producing biomass in the form of trunks, fronds, empty fruit bunches, mesocarp fibres and palm kernel shells.

Although the potential of oil palm biomass is well established, its full utilisation remains elusive. Palm kernel shells, with their high combustibility, are being exported for green power generation in Thailand and Japan, and some local mills use them for energy.