FGV unit to export 60,000 tonnes of palm kernel shells to Japan

KUANTAN: Felda Johor Bulkers Sdn Bhd (FJB), a subsidiary of Felda Global Ventures Holdings Bhd, seeks to export 60,000 tonnes of palm kernel shells (PKS) to Japan by end of this year.

FJB chief executive officer Mohamad Zuki Wan Abdullah said the move is in line with the expected increase in production of PKS by Malaysian oil palm mills.

He said Malaysia has a 54 per cent share in the PKS market in Japan, which since the 2011 Fukushima Daiichi nuclear plant disaster had sought to decrease its reliance on nuclear power and boost its use of bio-renewable energy.

“This is a pioneering project by FJB to generate more income to the group. It is a waste to wealth project that is set to undergo rapid growth due to an increase in demand from Japan, South Korea and China,” he said at a media walkabout of its PKS export facility at the Kuantan Port here today.

PKS is a byproduct of the extraction process of palm oil from fresh palm fruits.

FJB gets PKS from the Felda Palm Industries Sdn Bhd mills, which is transported to FJB warehouses such as the one near Kuantan Port.

Earlier, at a media briefing in FJB’s office near Kuantan Port, Zuki said the company sees much potential in the export of PKS, especially to Japan.

“Japan is expected to import (from Malaysia and Indonesia among others) around 1.5 million tonnes of PKS annually by 2018, and forecast to import 20 million tonnes annually by 2030,” he said.

“The current market price for cleaned PKS is between US$75 and US$85 per tonne and the prices are on an uptrend,” he said.

Zuki said FJB gets PKS from oil mills in Peninsula Malaysia, which are then transported by lorries to two ports namely Kuantan Port and Tanjung Langsat, Pasir Gudang, Johor, for export.

“At the moment we only export PKS to Japan,” he said, adding that it has future plans to expand to South Korea and China market.

He said FJB first began exporting PKS about 30,000 tonnes to Japan late last year.

“So far this year, we have exported around 40,000 tonnes,” he added.