Palm Kernel Shells (OR PKS) are the shell fractions left after the nut has been removed after crushing in the Palm Oil Mill. PKS are a fibrous material and can be easily handled in bulk directly from the product line to the end use. Large and small shell fractions are mixed with dust-like fractions and small fibres.

Moisture content in kernel shells is low compared to other biomass residues, meeting the needs of the following countries.
a) Japan
b) Thailand
c) China
and other countries.

PKS contains residues of palm oil, which accounts for its slightly higher heating value than average lignocellulosic biomass. Compared to other residues from the industry , it is a good quality biomass fuel with uniform distribution, easy handling, easy crushing, and limited biological activity due to low moisture content.

Press fibre and shell generated by the palm oil mills are traditionally used as solid fuels for steam boilers. The steam generated is used to run turbines for electricity production. These two solid fuels alone are able to generate more than enough energy to meet the energy demands of a palm oil mill.

The demand for PKS has increased considerably in Malaysia, Indonesia and Thailand resulting in price close to that of coal. Cement industries are using PKS to replace coal maily because of CDM benefits