11/03/2011 (Daily Express) - A businesswoman in Canada is well-positioned to take the lead and show especially local entrepreneurs that they can actually make money from palm oil empty fruit bunches (EFB).

Business Development Manager of Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd, Dr Leonard Gomes, said this woman is now running a successful global business doing packaging for EFB back in her country.

And her supply of EFB is coming from Malaysia and Indonesia, he said, adding that the woman saw the opportunities for EFB when she came to Malaysia on some other business purposes sometime ago.

"This Canadian businesswoman is now running a successful global business doing packaging for EFB in her country, with all her supply coming from Malaysia and IndonesiaÉbut we haven't done it here, why?" he asked.

He said if someone not from this country could do it, there should be no reason for entrepreneurs here not to be able to do the same.

"I hope there will be Sabahans also doing like that," he said after presenting his paper titled "Opportunities of Markets for Oil Palm Biomass" at the Conference on New Business Opportunities in Oleochemicals, Biomass and Nutraceuticals Sectors jointly organised by Malaysian Palm Oil Board (MPOB) and POIC Sabah at the Pacific Sutera here recently.

On his presentation, Dr Leonard said POIC Sabah is currently focusing on the many opportunities in the use of biomass.

"And we are really trying to focus on it now because, until recently, biomass especially of the oil palm, still remained as waste or residue or under utilisedÉSabah has got so much biomass and we want to take the opportunity," he said.

He said they are presently looking at the many challenges, like in terms of logistics, transportation, supply, pricing and others.

Asked if there were is a company venturing into this in Sabah so far, Dr Leonard said: "We (in POIC) have at least one company using palm kernel shells."

"Other than that nobody else. But there are a lot of people interested, but the thing is that they need to be sure that there is a secure supplyÉwhen there is a secured supply definitely they (investors) will come."

"Because for them (investors) they know the technology is available and the market is there, so they just need to make sure that the raw material is available, there is reliable supply of raw material and it is at an affordable cost," he said.

To a question, Dr Leonard said in Sabah there will be raw materials, but the question is whether these raw materials will be available at cheaper cost and consistently.

"Because if we look at the kind of businesses I was talking about, whether the plywood, MDF, activated carbon, pulp and paper and so on, it involves a huge investment, that is, up to a few hundred million ringgit, and thus they need to be assured there will be long-term consistent supply of raw material," he said.

On Sabah's readiness, Dr Leonard said Sabah is ready and that is why POIC is there to help and facilitate the process.

During the question and answer one of the participants raised the problems and challenges in venturing into biomass-related business activities.

"Yes there are problems and challenges in using biomassÉbut if we always focus on the challenges and problems, and not deal with the opportunities, we will never go anywhere," he said.

Nevertheless he agreed that there is a need to have a one-stop centre for those wanting to venture into biomass businesses.

"It is a valid point in order to smoothen the processing process particularly those about to set up their businessÉin Sabah POIC is helping those starting a venture in the processing to ensure everything runs as smoothly as possible," he said.