Palm kernel shell is a by-product in the production of palm oil and is commonly used in the natural biomass energy industry. Palm kernel shells (or PKS) are the shell fractions left after the nut has been removed after crushing in the Palm Oil mill. It is a fibrous material, brownish-yellow in colour and can be easily handled in bulk directly from the product line to the end use. Due to its high calorific value, averaging 4000 Kcal/kg, and low ash content, it is considered an attractive source of fuel in the production of energy from renewable sources. Palm Kernel Shell are a side product derived from the production of palm kernel oil and palm oil from the palm tree seeds. The palm kernel shell is thick and wood like and hence a perfect fuel for wood co generation plants, thermal power stations, biomass power and industrial plants. Palm kernel shell (PKS) is actually the by-product from palm oil industry, before the era for palm kernel shell being used as biomass, the oil palm owner will bury the palm kernel shell underneath the land and let it becomes black color palm kernel compost. This is sort of organic fertilizer but because of the hard shell, it takes much longer time for converting totally to organic fertilizer.