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,...
The truth is palm oil is big business worldwide, considering the fact it leads the global trade in oils and fats.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 . 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.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. The author argues that palm oil waste — particularly POME and empty fruit bunches — should be converted into biomethane, turning an environmental liability into a profitable, renewable energy source. — Picture by Farhan Najib Second, complexity. Handling fibrous waste requires pre-treatment, and running a biogas plant needs new technical skills. 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.So why hesitate?A mill that captures its methane can tap into both.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.Treat this not as a compliance cost, but as a strategic investment in long-term viability and brand redemption.To Policymakers: Stop with the lukewarm endorsements.Streamline approvals for bio-CNG projects and gas grid injection.Make methane capture a cornerstone of national climate action plans.Here is a tangible, powerful chance to rewrite it.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 fact is Malaysia has long launched the National Biomass Action Plan.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.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 ** This is the personal opinion of the writer or publication and does not necessarily represent the views of
Indonesia Palm Oil Palm Oil Mill Effluent Biomethane Production Circular Economy National Biomass Action Plan
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