Palm kernel shells, coconut shells, sawdust and other woody biomass can all be processed through pyrolysis. Whether your waste is commercially suitable depends on seven factors, from moisture and ash to supply and logistics.
On this page

Wetter, fibrous materials such as empty fruit bunches (EFB) also work, but need more drying and size reduction. The seven factors that decide commercial suitability are moisture, ash, contamination, particle size, supply volume, supply consistency, and transport and storage.

Malaysia’s agricultural and processing industries generate substantial quantities of biomass. Some of it is already used as boiler fuel or agricultural input; some has the potential to be converted into higher-value products through biomass pyrolysis. This guide explains which residues work, what decides feasibility, and what products you can realistically aim for.

What Biomass Waste Can Be Used for Pyrolysis?

Pyrolysis involves heating biomass under oxygen-limited conditions, breaking down organic material into solid carbon, condensable liquids and gases. Common biomass feedstocks in Malaysia include palm kernel shells, empty fruit bunches, mesocarp fibre, coconut shells, and sawdust and wood residues. Each arrives in a different condition and suits different products.

Pile of dark brown palm kernel shells, the hard shell fragments left after palm kernel processing
Palm kernel shells (PKS): hard, dense and generated in bulk at palm oil processing facilities.
FeedstockWhere it comes fromPreparation usually neededCommon product pathways
Palm kernel shells (PKS)Palm kernel processingLow: screening, some dryingBiochar, charcoal, activated-carbon precursor
Empty fruit bunches (EFB)Palm oil millsHigh: drying and size reductionBiochar, bio-oil
Mesocarp fibrePalm oil extractionModerate; commonly used as boiler fuel todayThermal conversion, biochar
Coconut shellsCoconut processingLow to moderateCharcoal, activated carbon
Sawdust and wood residuesTimber processingMoisture and contamination controlBiochar, charcoal briquettes

These materials have different physical and chemical characteristics. A feedstock that works well in one pyrolysis process may need additional preparation or different operating conditions in another. For businesses evaluating pyrolysis, the key question is not simply whether the material can be processed, but whether it can produce a useful product at a commercially viable cost.

What Determines Whether Biomass Waste Is Suitable for Pyrolysis?

Even when biomass is technically suitable, seven factors decide whether it can be processed efficiently and economically.

Infographic of seven biomass assessment factors for pyrolysis: moisture content, ash content, contamination, particle size, supply volume, supply consistency, and transport and storage
Seven factors decide whether a biomass stream can be processed efficiently and economically.
Assessment factorWhat businesses should check
Moisture contentWet biomass needs additional drying, which increases energy use and operating cost.
Ash contentAsh can affect reactor operation, carbon quality and the suitability of the final product.
ContaminationSoil, plastics, metals, chemicals and treated materials can affect processing and product quality.
Particle sizeLarge or fibrous material may need shredding, crushing or screening.
Supply volumeEnough feedstock must be available to support the intended plant capacity.
Supply consistencySeasonal changes and variations in feedstock quality can affect production.
Transport and storageCollection distance, handling and storage requirements influence overall project economics.

For example, EFB can be used for pyrolysis, but its higher moisture content and fibrous structure usually need more preparation than PKS. MPOB research has demonstrated the conversion of pre-treated EFB into bio-oil and biochar through fast pyrolysis.

A proper feedstock assessment should establish the biomass characteristics and required preparation before deciding on reactor type, plant capacity or production cost. Our pyrolysis process guide explains how feedstock is sized, dried and fed into the reactor.

Why Is Palm Kernel Shell a Strong Pyrolysis Feedstock in Malaysia?

Palm kernel shell is particularly relevant to Malaysia because of the scale of the country’s oil palm industry. According to the Malaysian Palm Oil Board (MPOB), Malaysia had approximately 5.70 million hectares of oil palm planted area as at December 2025.

Unlike agricultural residues that are scattered across farms, PKS is generated at processing facilities, where collection, bulk handling and trading are already established. It also offers:

  • Relatively low moisture compared with fresh EFB, so less drying is needed.
  • High carbon potential for biochar production or further processing.
  • Multiple product pathways, including biochar, charcoal and carbon material for activation.
Harvested oil palm fresh fruit bunches piled at a plantation collection point
Malaysia’s oil palm industry processes fresh fruit bunches at scale, generating PKS, EFB and mesocarp fibre as by-products.

MPOB has demonstrated PKS biochar production through controlled carbonisation at pilot scale, and Qlean Tech uses PKS as its primary feedstock for biochar production.

The caveat: PKS already has commercial demand as biomass fuel. The same MPOB study notes that palm oil mills use an average of about 0.16 tonnes of PKS per tonne of crude palm oil as boiler fuel, and the remaining 0.20 tonnes is often sold as fuel. Any new pyrolysis project must account for purchase price, competing uses and long-term supply arrangements rather than assuming the material is free.

PKS or Coconut Shell?

Coconut shell is the established benchmark for hard, microporous activated carbon. PKS is a credible alternative precursor. In a study published in MPOB’s Journal of Oil Palm Research, PKS steam-activated in commercial-scale equipment produced activated carbon with a surface area of about 608 m²/g, comparable to the commercial activated carbon tested alongside it (about 691 m²/g).

A comparative study by MPOB also tested both materials on palm oil mill effluent (POME) purification. Under the study’s conditions, PKS activated carbon reduced biological oxygen demand (BOD) by 84.72%, compared with 78.61% for coconut-shell activated carbon.

Palm kernel shells on the left and coconut shells with husk fibre on the right, two dense shell feedstocks for pyrolysis
PKS (left) and coconut shell (right) are both dense shell feedstocks. In Malaysia, PKS has the larger and more concentrated supply base.

For Malaysia, the bigger difference is supply. Oil palm processing is far larger and more concentrated than the coconut industry: Malaysia produced about 702,200 tonnes of coconuts in 2025 and imported a further 271,300 tonnes, according to the Department of Statistics Malaysia (DOSM). A commercial carbon-production project needs feedstock that is available in sufficient quantity, consistently, and within a practical collection radius.

Whether PKS can replace a specific coconut-shell grade still depends on the pore structure and adsorption performance the application needs.

What Value-Added Products Can Biomass Pyrolysis Produce?

One reason businesses explore pyrolysis is the opportunity to turn one biomass stream into several commercial products. Outputs depend on the feedstock, temperature, heating rate, process configuration and any further processing.

Lumps of black biomass charcoal with a spoon of granular biochar, two solid products of pyrolysis
Charcoal and biochar are the main solid products of biomass pyrolysis.

Biochar

A carbon-rich solid produced through biomass pyrolysis. Depending on its properties and quality, it can be used in agricultural soil applications, composting, environmental treatment and selected industrial uses. See what biochar is and how it is used, or view our biochar products.

Activated Carbon

Carbonised biomass can be activated to develop its internal pore structure and adsorption capacity. PKS-derived activated carbon is particularly relevant in Malaysia as a local alternative to coconut shell, coal and wood precursors, with potential uses in water filtration, wastewater treatment, air purification and industrial adsorption, subject to the required grade. See our activated carbon products.

Charcoal Briquettes

Suitable charcoal or carbonised biomass particles can be compressed into uniform briquettes for cooking, heating and selected industrial fuel uses. See our charcoal briquettes.

Biomass Pyrolysis Oil

Condensable vapours from pyrolysis can be collected as biomass pyrolysis oil. Depending on its specifications and equipment compatibility, it can be used for industrial heating in boilers, furnaces and dryers. Read how bio-oil is used in industry or view our biomass pyrolysis oil.

Wood Vinegar

A liquid recovered from suitable biomass pyrolysis condensates. After appropriate processing, it can be evaluated for agricultural uses such as plant and soil management. Read what wood vinegar is or view our wood vinegar.

Not every pyrolysis plant produces all of these commercially. Identify the intended product before selecting the feedstock and production technology.

How Can Businesses Turn Biomass Waste Into Commercial Value?

Converting agricultural residues into valuable products involves more than installing a pyrolysis reactor. For oil palm estates, palm oil mills and other biomass-generating businesses, project development should start with four questions:

  1. Feedstock availability: What type, quantity, properties and consistency of biomass is available?
  2. Product selection: Does the target market need biochar, charcoal, activated carbon or another pyrolysis product?
  3. Technical feasibility: What preprocessing, pyrolysis technology, plant capacity, utilities and product quality are required?
  4. Commercial feasibility: What are the capital cost, operating cost, logistics, product pricing and potential buyers?

For example, a palm oil business with consistent PKS supply could assess whether converting part of it into biochar or activated-carbon precursor earns more than its current use as fuel. Higher-value products usually need additional processing, quality control and access to buyers, so potential revenue must be weighed against production and investment costs.

This is where feedstock assessment, technology selection and feasibility studies come in, before you commit to a commercial plant. Once a project is confirmed, Qlean Tech’s EPCC pyrolysis services cover design, procurement, construction and commissioning. Projects producing biochar for long-term carbon storage may also explore carbon credit options.

References

  1. Malaysian Palm Oil Board (2026). Oil Palm Planted Area as at December 2025. bepi.mpob.gov.my
  2. Zainal Haryati, Soh Kheang Loh, Sieng-Huat Kong & Robert Thomas Bachmann (2018). Pilot scale biochar production from palm kernel shell (PKS) in a fixed bed allothermal reactor. Journal of Oil Palm Research, 30(3), 485–494. jopr.mpob.gov.my
  3. Mohamad Azri Sukiran, Soh Kheang Loh & Nasrin Abu Bakar (2018). Conversion of pre-treated oil palm empty fruit bunches into bio-oil and bio-char via fast pyrolysis. Journal of Oil Palm Research, 30(1), 121–129. jopr.mpob.gov.my
  4. Rugayah, A.F., Astimar, A.A. & Norzita, N. (2014). Preparation and characterisation of activated carbon from palm kernel shell by physical activation with steam. Journal of Oil Palm Research, 26(3), 251–264. jopr.mpob.gov.my
  5. Nahrul Hayawin, Z., Ropandi, M., Nor Faizah, J., Noorshamsiana, A.W. & Astimar, A.A. Comparative assessment of activated carbon from oil palm kernel shell versus coconut shell for POME purification. Poster, Biomass Technology Unit, MPOB. biocharmalaysia.com
  6. Department of Statistics Malaysia (2026). Supply and Utilization Accounts Selected Agricultural Commodities, Malaysia 2021–2025. dosm.gov.my