An August 2020 study conducted by Peterson Projects & Solutions Singapore states:
“Due to the ongoing growth of demand for palm oil and palm kernel oil, there is an abundance of PKS available, for which there is no use or application of relevant scale or value, except its use as a biofuel, where it offers immense emission reduction potentials, especially in economies, which still rely heavily on fossil fuels, in particular coal.
As was shown, the relative value of PKS compared to the other process outputs has remained constant over the past 20 years and it seems unlikely that mills focus a lot on the palm kernel shell value in their production planning. The risk of palm kernel shell procurement leading to additional deforestation can be minimised through a sustainable sourcing strategy, engaging in supplier screening and considering suppliers’ certificates.
PKS should be seen as a viable input for bioenergy generation, which can significantly reduce the demand for traditional inputs for thermal power plants and provide important baseload power.”