Malaysia has an abundance of energy resources, both renewable and non-renewable. The energy demand and supply by source are also shown in relation to the country’s fuel diversification policy.The efforts were undertaken to encourage the utilization of renewable resources. Forest residue and oil palm biomass are found to be potentially of highest energy value and considered as the main renewable energy option for Malaysia. The mass balance of the oil palm industry in Malaysia is reviewed as it is self-sufficient in energy, including a proposed plan for the operational process and product of the palm oil industry if used EFB as fuel beside palm shell and fibre. Palm oil and related products represent the second largest export of Malaysia. This book gives a detailed representation of oil palm planted and produced together with its yield from the year 1976 onwards. The large amounts of available forest and palm oil residues resulting from the harvest can be utilized for energy generation and other by-products in a manner that also addresses environmental concerns related to current waste disposal methods.