31/08/2012 (Bernama) - The government is on track to achieve a 50:50 ratio of biomass to palm oil production in the country's palm oil industry by 2020, said Plantation Industries and Commodities Deputy Minister Datuk Hamzah Zainudin.

He said the current ratio is 10:90 with the target to achieve the 50:50 ratio for the industry.

"The Malaysian Palm Oil Board (MPOB) is currently focusing on biomass by turning waste into wealth," he said after the signing of a Memorandum of Understanding (MoU) between MPOB, National Kenaf and Tobacco Board (NKTB) and Dongwha Malaysia Holdings Sdn Bhd here.

He said there is a huge market for biomass and the government is looking at various studies to enhance the biomass industry in the country.

Oil palm biomass has been proven to be suitable as an alternative raw material for Medium Density Fibreboard (MDF), he said, adding oil palm waste can also be turned into fertiliser, wood-based furniture, energy and biochemical products.