Taiyo Biomass (TBSB) will launch an empty fruit bunch (EFB) pellet plant in Pasir Gudang, Johor, on September 7. The plant has an initial capacity of 15,000 t/yr and aims to supply biomass markets in Northeast Asia.
The launch of Taiyo Biomass's EFB plant signifies a move towards utilizing agricultural waste for energy, potentially reducing methane emissions and offering a sustainable fuel alternative. Its success could impact renewable energy markets in Northeast Asia and highlight the challenges and opportunities in developing the nascent EFB pellet sector.
Malaysian biomass producer Taiyo Biomass (TBSB) is scheduled to launch an empty fruit bunch (EFB) pellet plant on September 7 in Pasir Gudang, Johor. The facility will have an initial production capacity of 15,000 tonnes per year.
Key specifications for the EFB pellets include a high calorific value exceeding 4,000 kcal/kg, moisture content below 10%, and high mechanical durability. The ash content will be carefully managed to prevent operational issues in boilers. EFB, an agricultural residue from crude palm oil (CPO) production, is targeted for use in contributing to the circular economy by reducing methane emissions from decomposition and offering a sustainable alternative to fossil fuels.
TBSB is focusing on biomass markets with strong policy support for renewable energy and stringent carbon reduction targets. The company plans to sell its products to domestic and industrial end-users, including power plants seeking to co-fire or transition to biomass, and large industrial boilers in sectors such as cement, textiles, and food processing. Major energy-importing markets in Northeast Asia, specifically Japan, South Korea, and Taiwan, are primary targets due to established and expanding demand under schemes like Japan's feed-in-tariff (FiT) and South Korea's renewable energy certificates (RECs).
Market participants note that the EFB pellet market is still in its early stages, with some Japanese biomass utilities considering its use. While EFB pellets are accepted by Japan's FiT scheme, concerns exist among Japanese utilities regarding potential unwanted chemicals. TBSB acknowledges technical, commercial, and logistical challenges, including the high ash and potassium content of EFB, which can cause clinker formation if not properly processed. The company must also compete on energy content and delivered costs against established fuels like wood pellets and coal, while navigating complex sustainability certification requirements. Additionally, the low bulk density of raw EFB feedstock and the need to aggregate it from multiple CPO mills necessitate significant investment in a robust supply chain prior to plant launch.
Taiyo Biomass already exports palm kernel shells from Malaysia and operates existing factories in Pasir Gudang, Port Klang, and various locations in East Malaysia. The firm intends to expand production capacity at its new EFB plant as soon as feasible.