Latin America is attracting increasing attention as a potential new source of palm kernel shells (PKS) for the global biomass energy market. While Southeast Asia remains the dominant region for international PKS supply, Latin America’s established palm oil industry offers opportunities worth exploring.

A Growing Palm Oil Industry

Countries such as Colombia, Guatemala, Brazil, Ecuador, and Honduras have established oil palm cultivation and processing industries. Palm kernel shells are generated as a by-product of palm oil processing and can be used as biomass fuel for industrial boilers and power generation.

However, palm oil production capacity does not automatically translate into exportable PKS supply. Some shells are already consumed locally for energy, while others may require additional collection, processing, storage, and logistics arrangements.

Opportunities and Challenges for PKS Exports

For Latin America to become a reliable PKS export source, several factors must be considered: consistent collection volumes, quality control, moisture management, suitable loading facilities, and competitive transportation costs to Asian markets.

Compared with established Southeast Asian supply chains, Latin American exporters may face additional challenges in developing regular bulk shipments of PKS. Nevertheless, experienced local producers and aggregators could play an important role in building new export channels.

Potential for the Korean Biomass Market

Korean biomass power plants require dependable fuel supplies with consistent quality and reliable delivery schedules. Diversifying sourcing regions could provide additional options for long-term procurement, provided that technical specifications, sustainability requirements, and delivered costs are competitive.

PKS Korea’s Perspective

PKS Korea is exploring potential supply partnerships across Asia, Africa, and Latin America for planned shipments from July 2027 to June 2028.

Our focus is not simply to identify new sources of PKS, but to develop reliable, transparent, and sustainable supply relationships that can support the Korean biomass energy market over the long term.

Latin America may not yet be an established PKS export hub on the scale of Southeast Asia. However, its palm oil production base makes it a region worth watching as the international biomass supply landscape continues to evolve.