27/03/2012 (Malaysian Reserve) - Agensi Innovasi Malaysia (AIM) is optimistic that the palm oil sector's contribution to the national gross domestic product (GDP) can be doubled from RM30 billion to RM60 billion by 2020.

According to AIM, Malaysia produces 80 million tonnes of palm biomass annually. With the growing potential of biomass, a public-private partnership has resulted in the formation of the Oil Palm Biomass Centre (OPBC) through AIM. The centre's main task is to accelerate technology development for utilisation of oil palm biomass.

With the setup of OPBC, the country is looking at increasing palm biomass production to 100 million dry tonnes by 2020. This is in line with the announcement of the National Biomass Strategy 2020 in November last year.

AIM chief executive officer Mark Rozario said the OPBC will contribute towards creating knowledge-based industries and high-value job opportunities for Malaysians.

OPBC's strategies include attracting international players to work with local companies and academic institutions.

With that, OPBC hopes to accelerate oil palm and other tropical biomass industries "at a meaningful scale".

OPBC will focus on the development of a sustainable palm-based industrial sector for the production of bio-chemicals, bio- fuels and bio-energy, Rozario said.

To further the cause of biomass, the Malaysian government has formed the 1Malaysia Biomass Alternative Strategy (1MBAS) initiative, which will focus on establishing a new source for cutting edge, high-value industries and additional skilled jobs for Malaysians.

"The palm oil industry in Malaysia is the fourth largest contributor to the country's gross national income, accounting for about 8% or equivalent to RM50 billion.

The 1MBAS strategy will create a platform for creating close to 70,000 new jobs for Malaysians, 40,000 of which will be high-skill jobs," said Prime Minister Datuk Seri Mohd Najib Razak during the launch of 1MBAS.

OPBC is expected to cost the Malaysian government about RM100 million to execute its plans.

"The Malaysian government will be forking out RM100 million for the execution of the 1MBAS business plan, with the 19 OPBC partners also contributing an equal amount of money for the project," said Denmark-based biotechnology company Novozymes' director of new research and business Dr Steffen Ernst.

Novozymes is one of the 19 companies that signed a memorandum of understanding to demonstrate their commitment to collaborate on biomass projects locally with OPBC.