KUALA LUMPUR, March 5 — The Ministry of Plantation and Commodities has identified Sandakan, Sabah, for the oil palm biomass collection and processing centre (CPC), to be built by Nextgreen Global Bhd and the Kinabalu Palm Oil Group.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the expected CPC investment is estimated at RM60 million and is one of the initiatives under the National Biomass Action Plan 2023-2030 which was launched on December 7, 2023.

"It is estimated that the total availability of oil palm biomass in Sandakan Division is 13.04 million tonnes which consists of palm fronds (8.19 million tonnes), palm trunks (2.53 million tonnes), empty fruit bunches (0.87 million tonnes), mesocarp fibre (0.92 million tonnes) and oil palm kernel shell (0.53 million tonnes),” he said in a reply to a question from Vivian Wong Shir Yee (PH-Sandakan) at the Dewan Rakyat today.

Chan noted that the Sandakan Division, which includes the districts of Sandakan, Kinabatangan, and Sugut/Labuk (Beluran), has an oil palm planting area of 742,304 hectares (ha) with a replanting area of 34,016 ha, and as many as 65 oil palm mills in operation.

According to the Malaysian Palm Oil Board (MPOB), Sabah has the highest number of operating oil palm mills (125 units) in 2023, and the country’s second-highest palm oil cultivation area (1.51 million ha).

Sabah also has 10 palm kernel-crushing plants and 11 operating refineries.

In addition, Chan said the Plantation and Commodities Ministry, through the MPOB, is also developing a palm oil biomass database system under the 12th Malaysia Plan, towards the commercialisation of high-value products based on palm biomass.

The database will make it easier for the industry to assess the production and consumption statistics and plan a long-term strategy for the commercialisation of palm biomass products. — Bernama