ABSTRACT: The use of biomass as renewable energy and material resources are important for countries where there is limited supply of fossil fuel reserves. Biomass is unique in the sense that it is the only renewable source of carbon which provides the basic building block for fuel and chemical industries. The cultivation of large area of agricultural plantation like rubber and oil palm trees help to absorb excess atmospheric CO2 thus reducing the green house effect as to maintain the desired ecological balance. Generally, biomass also provides flexibility in shifting usage from food to energy and to material applications when desirable, has well been demonstrated at large scale production. Sustainable carbon cycle diagram as shown in Figure 14.1 shows the continuous process of carbon mass transfer into various states of utilization. There are several of biomass solid wastes available in Malaysia. The agro-industrial sector of Malaysia generates a significant amount of oil palm solid wastes, rubber wood wastes, timber wastes and rice husk. Biomass residues from oil palm plantation in Malaysia, have the potential usage for utilization as energy and other applications. This is due to the ease of collection of biomass residues at the oil palm mills in huge amount.