Jakarat, Beksi Energy – Palm kernel shells (PKS) are increasingly in demand as biomass — exports and capacity investments are rising.

Demand for PKS as a biomass fuel and feedstock for co-firing continues to grow, driven by green energy needs and export demand. Several Indonesian producers are targeting an export capacity increase of up to millions of tons per year in the coming years.

The Indonesia–EU trade agreement (substantial) and a pause in anti-deforestation regulations provide opportunities for palm-value chain products to enter new markets — though exporters must still demonstrate environmentally responsible production to access environmentally sensitive markets.

Major PKS companies are ramping up collection, drying, and port infrastructure to meet export demand (quality & continuity). This creates opportunities for strategic partnerships between PKS producers and power plants implementing co-firing.

Challenges remain: fluctuations in vegetable oil prices and export/levy policies (e.g., changes in export tariffs) can affect PKS competitiveness in international markets. Producers investing in traceability and sustainability standards will have a competitive edge.