Biomass is a renewable energy source that at present is underutilized especially in Malaysia Kevin and Margaret). The general technical advantages of wood and biomass gasification are the low needs for oxygen and steam as well as the low sulphur content. Thus, biomass can be used as a source of fuel to produce a low energy fuel for industrial boiler systems and burners. Besides power generation, the gasification technology can also be used to convert the biomass from palm oil mill by-products i.e. palm shell, press fibre and empty fruit bunch (EFB), and biomass from replanting and fronds from pruning for the production of chemicals, especially methanol. Methanol is widely used in the chemical industry and most of it is produced at the moment by the petroleum industry. With the increased awareness on climatic change and global warming, biomass gasification will provide an alternative source of clean and sustainable energy for generating electricity or synthetic natural gases (SNG). The technology will reduce the local and regional pollution in Malaysia, important factors for climate change according to the Kyoto Protocol under Global Environmental Frameworks – United Nation Development Programme (GEF-UNDP).