EFB Pellet Business Environment

EFB Pellet

EFB Pellet

EFB pellet is a biomass product claiming for renewable energy.  Many people was getting excited about this product and start investing in the field while they start aware this product.  DST has been involved in biomass renewable energy for many years, and we definitely do not want to miss out the opportunity on EFB pellet sactor.

Establish a sustainable EFB pellet business is a difference story than just an investment.  We have much more to consider and execute in order to make it a sustainable and profitable.  Through pass years of operating our EFB pellet manufacturing, we are very sure the pellet should be one of the future as energy becomes scarcity.  However, we do acknowledge there are still challenges along the way.

In this article, we are going to discuss several business challenges for starting up an EFB pellet business in Malaysia.

Challenges for EFB Pellet Business

EFB Pellet manufacturer process setup

EFB Pellet manufacturer process setup

All business is facing it own challenge along the road, this imply to EFB pellet business environment too!  The business owner may miss out certain

  1. Raw Material of EFB Pellet
  2. Skill Worker Availability
  3. Efficiency and Operating Cost
  4. Export/Import Regulation and Tax

What other alternative user could choose besides EFB pellet

  1. Natural Gas
  2. Petroleum product
  3. Other renewable commodity

Is EFB Pellet a Growing Business?

From our pass experience, we think EFB pellet should be a valuable product but it should not be limited in biomass or renewable sector only.

Empty fruit bunch or EFB is a by-product from palm oil industry, must of the fibre has been used as the prime material for fibre mattress, biomass or landscape.  Field industry has never stop exploring other opportunity for EFB.  Pelletize EFB is one of the strategy the field engineer applied.

Currently the EFB pellet has mostly used in biomass industry however there are a few more sectors who need pelletize EFB.  However difference industry may have respective pelletize condition.  At this moment, we are seeing some obstacle for EFB pellet business in biomass sectos.  Since DST has participarte in pelleting business for many in Malaysia, we are having better opportunity to widen up our EFB pellet application and business.

Biofuel Resource is a Pellet Supplier from Malaysia

Biofuel Resource is a Pellet Supplier from Malaysia

Is Malaysia Government provides a Positive EFB Pellet Business Environment?

Investing million Ringgit amout setup an EFB pellet plant could be a challenging decision if we are unable to get support from government.  Investor could look for tax exemption from Malaysia government or MIDA.

Besides tax exemption, Malaysia government also established certain organization such as SP Biomass in promoting the EFB pellet to Euro country.  There are also exhibition, symposium, conference being held through out the years.  You could always find the first hand information regarding Malaysia biomass or EFB pellet via SP Biomass.

Like we explain earlier, we agree, many investor who participate in EFB pellet business in Malaysia is facing great challenge this year.  Besides the support from Malaysia government, as an EFB pellet investor or SME, we are having our own responsibility to expand the EFB plellet from Biomass to other sectors.   The industry will be always there and just how we are going to position ourselves for next regime.

If you are one of the EFB pellet manufacturer, you are welcome leave your EFB Pellet business challenges which currently you are facing in below comments column.  We may have some dialogue or brainstorm to widen up the business opportunity.

About clchuah
CL Chuah is the Marketing Director for DST Technology for Biofuel Resource. You are welcome to get connect with Chuah.

Leave a Reply

Your email address will not be published. Required fields are marked *