1.5–2T/H Oil Palm EFB Pellet Production Line in Malaysia

Project Intention

The goals of this client building this oil palm efb pellet production line in Malaysia project are:

• Building a small-to-medium scale pellet line (1.5–2 t/h) suitable for EFB processing.
• Adding a carbonization step to upgrade pellets into biochar pellets with higher calorific value.
• Targeting local industrial users (boiler fuel) and future exports to countries like Japan and South Korea where biomass pellets and biochar are in demand.
• Ensuring that the line was easy to maintain and suitable for Malaysia’s humid climate.

After nearly three years of discussions, feasibility studies, and raw material testing, the contract was officially signed on February 14, 2025, with a total equipment investment of USD 249,220.

Raw Materials in the Malaysian Context

Malaysia’s palm oil industry generates a wide variety of biomass residues. For this biomass pellet mill plant project, the main feedstock is Oil Palm Empty Fruit Bunches (EFB), a fibrous by-product left after palm oil extraction. However, to maintain flexibility and adapt to seasonal variations, the client also considered blending in:

• Palm fronds and trunks (from replanting cycles).
• Palm pressed fiber (another residue from palm oil mills).
• Coconut husks (available in coastal areas and often mixed with palm biomass).
• Wood residues from small sawmills near the plantation.

EFB is particularly challenging because it is:

• High in moisture (60–65% fresh).
• Bulky and fibrous, making transportation costly.
• Rich in silica, requiring robust equipment.

These factors shaped the engineering design of the oil palm efb pellet production line in Malaysia.

Process Technology of the EFB Pellet & Carbonization Line

The RICHI team designed a complete biomass pellet production line integrated with carbonization, tailored specifically to EFB properties. The steps include:

1. Raw Material Preparation
   Fresh EFB is first shredded into manageable fiber lengths (10–30 mm). Metal contaminants are removed with magnetic separators to protect downstream machines.
2. Drying
   Because EFB is extremely wet, a triple-pass rotary drum dryer is used to reduce moisture from 60% down to 12–15%. The dryer is designed for tropical climates, with anti-corrosion materials and an option to use biomass waste as the heat source.
3. Fine Grinding
   After drying, EFB fibers are ground in high-speed hammer mills, reducing particle size to below 5mm. This ensures uniformity for pelletizing.
4. Pelletizing
   The dried and ground EFB powder is compressed by a ring die palm efb pellet machine with 1.5–2 t/h capacity. This stage transforms loose fibers into dense cylindrical pellets of 8mm diameter.
5. Cooling and Screening
   Hot pellets (about 90°C) are cooled using a counter-flow cooler, then screened to remove fines. Good pellets move forward while dust is recycled back into the process.
6. Carbonization
   A key innovation in this line is the addition of a carbonization furnace. Pellets are fed into the carbonizer and subjected to controlled pyrolysis in low-oxygen conditions. This process transforms ordinary pellets into biochar pellets, which have:
   • Higher energy density (4,800–5,500 kcal/kg).
   • Lower moisture content.
   • Longer storage stability.
   • Broader applications (fuel, soil amendment, activated carbon precursor).
7. Packaging
   Finished products are packed in 20kg bags for domestic use and 1-ton jumbo bags for industrial and export shipments.

Main Equipment for oil palm efb pellet production line in Malaysia

The client’s investment of USD 249,220 covered a complete set of equipment designed by RICHI, including:

• EFB shredders and fiber crushers.
• Rotary drum dryer (triple-pass, energy-efficient).
• Hammer mills with cyclone dust collectors.
• Ring die pellet mill (capacity 1.5–2 t/h).
• Counter-flow pellet cooler.
• Vibrating pellet screener.
• Carbonization furnace (continuous type).
• Belt conveyors and screw conveyors.
• Automatic bagging machine.
• Electrical control system with PLC automation.

This configuration strikes a balance between capacity, cost, and reliability, making it a perfect entry point into the biomass pellet and biochar industry.

Why Carbonization Matters in Malaysia

EFB pellets alone already have strong demand in Malaysia, particularly in:

• Palm oil mills switching from fossil fuels to biomass boilers.
• Food processing plants requiring renewable heat sources.
• Local power plants experimenting with co-firing biomass.

But the addition of carbonization creates new opportunities:

• Biochar exports: Japan and South Korea are actively importing carbonized pellets for use in advanced biomass power plants.
• Soil improvement: Biochar is increasingly recognized for improving soil fertility, an attractive option for Malaysia’s agricultural sector.
• Carbon credits: Carbonized pellets contribute to climate change mitigation and can be eligible for carbon credit trading.

By incorporating carbonization, the client positioned himself ahead of competitors who only produce raw pellets.

Market Prospects for EFB Pellets in Malaysia

Malaysia generates more than 20 million tons of EFB annually, yet only a fraction is valorized into pellets. Most are either dumped, mulched, or burned, which is wasteful and environmentally harmful.

The future looks promising:

• Government policies are encouraging renewable energy adoption under the National Biomass Strategy.
• Foreign markets are demanding certified sustainable biomass fuels.
• Carbon-neutral commitments by industries are pushing companies to switch to bio-based energy.

This 1.5–2 t/h oil palm efb pellet production line in Malaysia project may be modest compared to mega-pellet plants in other countries, but in the Malaysian context, it represents an important step toward decentralized, sustainable biomass utilization.

Raw Material Mix of the Project

The client plans a flexible feedstock strategy to guarantee supply:

• 70% Oil Palm EFB (main resource from the plantation).
• 15% Palm pressed fiber (easier to pelletize and improves durability).
• 10% Coconut husks (enhances calorific value).
• 5% Small sawmill residues (stabilizes pellet quality).

This balanced formula not only improves pellet density but also minimizes dependence on a single raw material stream.

Financial Perspective

The investment of USD 249,220 is relatively modest, given the biomass pellet project's scale. At 1.5–2 tons per hour, the line can produce 12,000–14,000 tons of pellets annually.

• Selling price of EFB pellets in Malaysia: USD 70–90/ton.
• Selling price of carbonized pellets: USD 120–150/ton (domestic and export).

With production costs kept low by abundant raw material supply, the client expects a payback period of about 2–3 years, with profitability accelerating once exports of carbonized pellets begin.

RICHI's Services for the Malaysian Client

RICHI Machinery provided more than machinery—it delivered a complete solution:

• Customized design for EFB's high-fiber structure.
• Raw material testing in RICHI's factory before finalizing equipment specifications.
• Factory layout planning, including material flow and space optimization.
• Installation guidance: Engineers will travel to Malaysia to supervise assembly and commissioning.
• Training programs: Operators are trained to handle pelletizing and carbonization processes.
• After-sales support: Quick-response service team and spare parts supply chain for Southeast Asia.

Customer Evaluation

After signing the contract, the client shared his reflections:

“When I first contacted RICHI back in 2022, I was simply curious about biomass pellet machines for Oil Palm EFB. I had no idea how complex the process could be. RICHI’s team took the time to explain every step, even tested my raw materials in their facility. What impressed me most was their suggestion to integrate carbonization. That turned out to be the smartest choice for my business. The equipment package they offered was within my budget, but more importantly, it was practical for Malaysia’s palm industry. I feel confident moving forward with this investment, and I see a great future in biochar pellets.”

Conclusion

The 1.5–2 t/h EFB pellet production line with carbonization in Malaysia demonstrates how palm biomass, once treated as waste, can be transformed into valuable renewable energy products. With RICHI Machinery’s expertise, the client is not only addressing a waste management challenge but also creating a profitable new business aligned with global sustainability trends.

For other palm estate owners, agro-industrial investors, and renewable energy entrepreneurs in Southeast Asia, this project stands as proof: with the right technology partner like RICHI, even a single waste stream such as EFB can be turned into a high-value energy solution.

Interested in turning palm biomass into pellets or biochar? Contact RICHI Machinery today for tailored solutions that match your local resources and market needs.