MARCH 26 — Palm oil is big business in Malaysia and Indonesia.
Together they produce more than 80 per cent of global supply.
The truth is palm oil is big business worldwide, considering the fact it leads the global trade in oils and fats.
For decades, the palm oil industry has been synonymous with environmental controversy. It still is.
But what if one of its biggest liabilities could be transformed into a powerful asset?
Beneath the steam and machinery of every palm oil mill lies a hidden energy source, currently bubbling away as a potent pollutant. It’s time to harness it. The culprit and the opportunity is Palm Oil Mill Effluent (POME).
When this wastewater decomposes in open lagoons, it releases vast amounts of methane — a greenhouse gas over 25 times more potent than CO₂.
Combine this with the mountains of leftover solid waste like empty fruit bunches, and you have a massive waste management headache.
Yet, together, these very wastes are the perfect recipe for biomethane — a renewable, clean-burning gas.
The technology is straightforward: instead of letting wastes decompose separately, we mix them in an anaerobic digester — a high-tech stomach — that captures the methane.
This process, called co-digestion, isn’t just science fiction; it’s proven, practical, and profitable.
It balances the waste streams, boosts gas production, and can power the mill, fuel vehicles, or even feed into gas grids.
It turns a cost centre into a revenue stream.
So why isn’t every mill doing this?
The roadblocks aren’t mysteries, but they are significant.
First, investment. The upfront capital for digesters and upgrading systems is high, and many millers, especially smaller operators, understandably balk.
Third, infrastructure and policy. Remote mills may lack connection to gas grids, and often, government policies offer little more than vague encouragement instead of concrete tariffs, tax incentives, or guaranteed off-take agreements.
But these challenges are surmountable, and the imperative to act is non-negotiable.
So why hesitate?
The global push for decarbonization is creating new currencies: carbon credits and green premiums.
A mill that captures its methane can tap into both.
More importantly, it can fundamentally rebrand its operations.
Imagine “carbon-neutral palm oil,” powered by its own waste, locking in premium markets and investor confidence.
The call to action is for two key players: To Industry Leaders: The first movers are already proving this works.
The challenge now is to scale, share knowledge, and drive down costs through innovation.
Treat this not as a compliance cost, but as a strategic investment in long-term viability and brand redemption.
Collaborate to create centralized biomethane hubs for smaller mills.
To Policymakers: Stop with the lukewarm endorsements.
Create a real investment landscape.
Enact strong feed-in tariffs for biomethane power.
Streamline approvals for bio-CNG projects and gas grid injection.
Offer targeted green financing and capital allowances.
Make methane capture a cornerstone of national climate action plans.
The narrative around palm oil has been stuck for too long.
Here is a tangible, powerful chance to rewrite it.
We have the waste, we have the technology, and we have a climate crisis that demands ingenuity.
Let’s stop letting our energy — and our credibility — evaporate into thin air.
It’s time to build an industry where the smokestacks of the past are replaced by the circular economies of the future.
The methane is there, waiting to be captured.
The question is, do we have the will to seize it?
The fact is Malaysia has long launched the National Biomass Action Plan.
But the execution is snail pace. Nothing much has happened.
Even the plan to create major collection centres of EFBs is showing lethargy.
In the meantime, much of the unused EFBs end up bloating the country’s not so well operated landfills.
One wonders why this lethargy.
Everyone is shouting circular economy. But the initiative to take the first step is not there.
Unless there is a bold commitment and move to change, the blueprint of the circular economy will remain just that, a plan!
* Professor Dato Dr Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an Adjunct Professor at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at ahmadibrahim@ucsiuniversity.edu.my
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
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