Assessment of Biomass Value Chains and the Energy-Food-Environment-Water (EFEW) Nexus in Malaysia's Oil Palm Sector

Abstract

As the demand for sustainable energy grows, biomass presents a promising alternative, particularly within Malaysia’s palm oil industry. However, uncertainty about public perception remains a challenge, affecting its acceptance and wider adoption. Additionally, the integration of the biomass value chain (BVC) with key sustainability aspects, namely energy, food, environment, and water (EFEW), which remains limited, leading to inefficiencies in harvesting, collection, pre-processing, storage,transportation, and conversion. This study examines the factors influencing the EFEW nexus within the BVC by analyzing survey data from 25 stakeholders using SPSS. The results show that Environmental and Climate Impact is the most influential factor (r = 0.798; β ≈ 0.44), followed by Technology Readiness and Private Investment & Finance. These findings suggest that firms managing climate risks, optimizing residue utilization, and adopting modern equipment perform best across EFEW dimensions, while government policy, although necessary, plays more of a supporting role. Based on these insights, several practical recommendations are proposed. First, future studies should increase the number and diversity of respondents to improve statistical significance and ensure more robust conclusions. In addition, overcoming key enabler-related challenges is crucial, including installing real-time environmental sensors, promoting circular waste practices, and co-investing in shared preprocessing hubs to improve drying and transport efficiency. Strengthening long-term policies, encouraging climate-resilient agriculture, and providing ESG and carbon accounting training are also essential for aligning stakeholders and improving operational sustainability. Together, these findings offer a realistic, data-driven pathway toward optimizing the biomass sector and enhancing Malaysia’s transition to a more resilient and environmentally responsible bioeconomy.