Malaysian biomass producer Taiyo Biomass (TBSB) is set to launch an empty fruit bunch (EFB) pellet plant on 7 September, the company told Argus today.
The plant is in Pasir Gudang, Johor, and has an initial production capacity of 15,000 t/yr.
Key typical specifications include a high calorific value of over NAR 4,000 kcal/kg, low moisture content below 10pc, high mechanical durability for safe transport, and ash content that is carefully controlled and treated to mitigate issues like slagging and fouling in boilers, said TBSB.
EFB is an agricultural residue of crude palm oil (CPO) production. Their investment in the EFB plant project aims to contribute directly to the circular economy, helping to reduce methane emissions from decomposing EFB and providing a sustainable alternative to fossil fuels, said the company.
The producer is targeting biomass markets with strong policy support for renewable energy and stringent carbon reduction targets. It also aims to sell its products to both domestic and industrial end-users, including power plants looking to co-fire with or fully transition to biomass, as well as large-scale industrial boilers in sectors like cement, textiles, and food processing.
The firm is looking at major energy-importing markets in northeast Asia, particularly Japan, South Korea, and Taiwan, where the demand for reliable, sustainable biomass fuel under schemes like Japan's feed-in-tariff (FiT) and South Korea's renewable energy certificates (RECs) are established and expanding, said TBSB.
The EFB pellet market is still at a nascent stage, with several biomass utilities in Japan considering its use in its boilers, according to market participants who spoke to Argus. EFB pellets are accepted by Japan's FiT scheme for biomass, which allows power producers to sell power generated from biomass at a higher price. But Japanese utilities are concerned about the existence of unwanted chemicals in the product.
The main challenges are technical, commercial and logistical, said TBSB. The inherently high ash and potassium content of EFB, if not properly processed, can cause operational issues like clinker formation in furnaces, it added.
The company must compete on energy content and delivered costs with other established fuels including wood pellets and coal and overcome complex sustainability certification requirements, it said.
Another logistical challenge for EFB production is the low bulk density of raw EFB feedstock and the need to collect and aggregate it from several CPO mills, which require heavy investment in a robust supply chain prior to launching the plant, according to TBSB.
The biomass producer regularly exports palm kernel shells from Malaysia, with existing factories in Pasir Gudang, Port Klang and in east Malaysian regions including Bintulu and Sandakan.
The firm plans to ramp up production through additional facilities at its existing plant as soon as possible, said TBSB.