Palm biomass collection and processing centre to be built in Sandakan

Palm biomass collection and processing centre to be built in Sandakan

05 Mar 2024

Sandakan has been earmarked for the development of the Palm Biomass Collection and Processing Centre (CPC).

Deputy Agriculture and Commodities Minister Datuk Chan Foong Hin said the centre, with an estimated investment of RM60 million, is a collaboration between Nextgreen Global Bhd and Kumpulan Sawit Kinabalu.

He said the project is one of the initiatives under the National Biomass Action Plan 2023-2030, which was launched on Dec 7 last year.

“The plan is designed to assist in the planning and development of the national biomass industry until 2030,” he said during the question-and-answer session in the Dewan Rakyat here.

Chan, who is Kota Kinabalu member of parliament, was responding to a question by Vivian Wong Shir Yee (PH-Sandakan) regarding the ministry’s plans to develop downstream palm oil and biomass industries in Sabah, particularly in the Sandakan region.

Last year, the Malaysian Palm Oil Board (MPOB) said that Sabah has 125 operational palm oil mills and the second-highest area of oil palm cultivation in Malaysia at 1.51 million hectares.

Sabah also has 10 palm kernel crushing factories and 11 refineries in operation.

The Sandakan region, which includes Sandakan, Kinabatangan, and Sugut/Labuk in Beluran, covers a total oil palm planting area of 742,304 ha with 34,016 ha dedicated to replanting.

There are 65 operational palm oil mills in this region.

The estimated availability of palm biomass in the Sandakan region is 13.04 million metric tonnes, comprising palm fronds (8.19 million metric tonnes), palm trunks (2.53 million metric tonnes), empty fruit bunches (0.87 million metric tonnes), mesocarp fibers (0.92 million metric tonnes), and palm kernel shells.

Source: NST