The Department of Agriculture (DA) – Davao Region has started discussions with a Malaysian company on the potential purchase of coconut shells for use as an alternative energy source, the agency said Thursday.
Officials from the DA’s Agribusiness and Marketing Assistance Division (AMAD) met with representatives of Borneo New Energy to assess the volume of coconut shells and other by-products available in the region and to explore possible collaboration on their sustainable use.
Borneo New Energy has expressed interest in purchasing coconut shells for energy production, with an initial plan covering about 100 metric tons, pending further assessment of local supply capacity.
The talks follow the recently concluded Sabah International Expo 2026, which connected local commodities with international buyers.
As part of the supply assessment, DA-Davao Region is coordinating with the Katipunan Small Coconut Farmers Multipurpose Cooperative in Panabo City, Davao del Norte. The cooperative manages approximately 2,350 hectares of coconut farms across 800 members, producing between 400 and 500 metric tons of coconut shells and related output per month – a potential source for the proposed supply arrangement.
In a statement, the DA’s regional office said the discussions are meant to identify additional markets for coconut by-products and to promote their sustainable use.
“Potential collaboration with Borneo New Energy may provide coconut farmers with an additional market for coconut shells that are otherwise treated as waste or low-value by-products,” the agency said.
The agency added that its market-linkage efforts extend beyond this particular arrangement. “Through AMAD, DA-11 (Davao Region) continues to facilitate market linkages between farmers’ organizations and potential buyers, while exploring value-adding opportunities that can provide additional income streams for coconut-producing communities,” it said.
No timeline has been given for when the supply assessment or any purchase agreement with Borneo New Energy will be finalized.
