Malaysia is a very fortunate nation in which the biomass productivity is very high. Efforts need to be taken to enhance and maximize the use of biomass resources efficiently especially during this time when soaring prices of crude oil has exceeded USD 130 per barrel. There are concerns about world oil production and the increasing demand of liquid fuels especially in the transportation sector. In order to mitigate future shortfalls of crude oil supply. countries all over the world are seeking technologies to produce alternative fuels.