03 July 2002 (Business Times) - THE world’s first pulp and paper mill thatuses oil palm biomass as feedstock is expected to start operations in thecountry by 2004.

The plant will have the capacity to produce 100,000 tonnes of pulp andpaper a year and cost between RM80 million and RM100 million to build,said Primary Industries Minister Datuk Seri Dr Lim Keng Yaik yesterday.

“With the project, Malaysia can emerge as a major pulp and paper player aswe produce about 30 million tonnes of oil palm biomass a year,” he added.

The minister was speaking to reporters after witnessing the signing of acollaboration pact between the Malaysian Forestry Research and DevelopmentBoard (represented by the Forest Research Institute of Malaysia) and OPBiomass Technologies (OPBT) Sdn Bhd in Kuala Lumpur.

Biomass refers to renewable agricultural waste generated by plantation,padi cultivation, forestry, sawmilling and other related operations.

OPBT is a consortium comprising Tepat Teknik Sdn Bhd (a subsidiary ofMalaysian Mining Corp), Joanas Sdn Bhd, Tuah Engineering Sdn Bhd andJohore Tenggara Oil Palm Bhd.

Under their memorandum of understanding, FRIM and OPBT will jointlydevelop a new pulping method based on a US technology called “organosolvprocess” which uses ethanol as the main solvent.

“Malaysia’s 351 palm oil mills produce 30 million tonnes of empty freshfruit bunches (EFB), not including the trunks and fronds, which are eitherthrown away, used as fertilisers or burned to generate energy.

“With this new process, the palm oil sector can earn additional incomefrom the waste and at the same time preserve the environment,” Dr Limsaid.

With the organosolv process, five tonnes of EFB can produce one tonne ofpulp. As such, Malaysia has the potential to produce three million tonnesof pulp per year from EFB alone.

“At the current price (of pulp) of about US$500 (US$1 = RM3.80) a tonne,the extra income will amount to US$1.5 billion,” the minister said.

Earlier, he launched a joint venture between the Government and theprivate sector to set up a pilot plant.

To be located at the Ulu Sebol Palm Oil Mill in Kulai, Johor — courtesy ofJohore Tenggara Oil Palm Bhd — the RM30 million mill will have an initialcapacity to process 20 tonnes of EFB a day.

The Government has allocated RM15 million for the joint venture. If thetrial run proceeds smoothly, the mill will be expanded and become fullyoperational on a commercial basis in 2004.

“It will not only produce pulp and paper but also other products likemedium density fibre board, fibremats and particle boards,” said Dr Lim.

There are currently 19 paper manufacturing companies and one pulp andpaper mill in the country. The mill, a conventional kraft pulp operation,is located in Sabah and has the capacity to produce 150,000 tonnes of pulpa year.

Malaysia imports over RM2.7 billion worth of printing and writing paper,kraft and medium weight packaging materials, and related productsannually.

At the signing ceremony, FRIM was represented by its director generalDatuk Dr Abdul Razak Mohd Ali and OPBT by chairman Datuk ShahabudinShafie.

(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)