Malaysia in 2006 produced 15.88 million tonnes of crude palm oil and 1.95 million tonnes of palm kernel oil. In the process of extracting these oils, a voluminous amount of biomass is simultaneously produced from the mills and also from the field. The biomass from the mills include empty fruit bunches, mesocarp fibre, palm kernel shell and liquid effluent. In the estates, fronds are regularly trimmed, while during felling for replanting the whole oil palm tree including trunk and fronds are available. These various forms of biomass have high calorific value and characteristics which make them amiable as commercial solid fuels. These biomass are also potential feedstocks for production of alternative liquid or gaseous form of renewable energy such as bioethanol, bioils and producer gas. Their abundance and availability throughout the year, mostly in partially treated form make them even more attractive as resources for renewable energy.