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POIC to purchase biomass for electricity

In the town of Lahad Datu, Sabah, Malaysia, state-owned Palm Oil Industrial Cluster (POIC) is looking to acquire biomass derived from oil palm that will go towards the generation of power.

According to the minister of industrial development Datuk Raymond Tan Shu Kiah, ‘The state cabinet has actually approved a budget provision to POIC for the purpose. The government is convinced that with the right technology, biomass such as empty fruit bunches, can be used as one of the fuel sources to generate for both industrial and domestic use.’

However he went on the say that selling biomass to POIC will not be made compulsory. Other business will still be in their right to buy the biomass, also.

POIC’s most recent project comes as it is estimated that approximately 6 million tonnes of biomass a year is being wasted at mills.

‘It makes commercial sense that instead of letting the wastes rot, the millers are making money by selling it to the government. It is a matter of killing two birds with one stone as they [millers] will also not be polluting the environment.’

POIC’s new power plant, which is scheduled for commissioning in late 2012, will have the ability to generate 23MW of electricity.