Market Place

Project Name

Palm biomass pellet biofuel project, part of the QL Zero-waste Renewable Energy Oil Mill

Project Period

Started in April 2009 and on-going.

Project Objectives

To eliminate palm processing biomass waste and convert it into fuel sources of renewable energy.

Project Budget

QL has developed the first zero-waste renewable energy oil mill which achieves zero-waste discharge while maximising energy efficiency and renewable energy production. QL has invested more than RM12 million in the Renewable Energy Technology in Pellet Biofuel project, which involves the development and commercialisation of a proprietary technology, with patent pending, to process palm empty fruit bunch into palm pellets.

Project Description

Palm oil activity is still the smallest of the Group’s three core activities, but its potential for growth is significant. While we continue to invest in palm plantation and food production, we have also identified palm biomass technology development as a potential growth area.

One of QL’s proprietary biomass technologies, with patent pending, converts palm oil mill by-products such as empty fruit bunches (EFB) into a high quality burning fuel called palm pellet biofuel. Palm pellet biofuel can substitute for coal as a burning fuel in power plants, and for industrial purposes. For every metric tonne of coal substituted palm pellet biofuel, 1 MT of CO2 emissions are reduced. In addition, the real-time treatment of EFB in palm oil mills into every MT of palm pellet biofuel also reduces our EFB landfil GHG emission by an average of 1 MT of CO2-equivalent.

QL is active in the field of biomass renewable energy. As part of the Group’s effort to develop more biomass energy applications, QL acquired a 40% equity stake in Boilermech Group in October 2010. Boilermech is one of the region’s leading biomass renewable energy companies with strong engineering and technology capabilities in agricultural biomass power and heat generation. With this investment, QL will make a bigger contribution towards Malaysia’s renewable energy development.

Benefits of palm biomass pellet biofuel project:

  • Reduces GHG emissions, on average, by approximately 30,000 MTs per year.
  • Qualifies for United Nations Framework Convention on Climate Change’s Clean Development Mechanism (CDM) project
  • Provides renewable energy fuel sources for power plant and industrial energy generation.
  • Enables QL’s palm oil mill to achieve zero-waste palm oil status which maximises renewable energy generation and biomass fuel production.
  • Reduces global and local environmental impact.