Malaysia has been relying on fossil fuels as the major source of energy despite the global trend in transitioning towards using renewable energy. It is crucial for the country to execute energy transformation to reduce its reliance on fossil fuels. Malaysia with its agriculture industries as one key economy sector, generates abundant biomass from the agriculture activities. The biomass has been underutilised despite the country’s policy to promote waste-to-wealth strategy. This work aims to trigger the industrial energy transition in the country and tackling climate protection through the adoption of local and underutilised biomass energy. In this work, an optimal biomass fuel formulation is developed using the elemental targeting approach. The modelling approach blends multiple species of underutilised biomass in the country for biofuel production to achieve feedstock security while maintaining acceptable biofuel properties. A conceptual biofuel product which could be fed into the existing energy extraction technology for consumption is targeted. The underutilized biomass wastes in Malaysia are first reviewed and their respective element characteristics are studied. Then, the underutilised biomass is integrated into the biomass supply chain and an optimum biofuel formulation is evaluated using the element targeting approach. The modelling result indicates that hemicellulose, cellulose and volatile matter are the major limiting characteristics that constrain the supply of biomass to the gasification plants and biomass of low cost is preferred in the biomass supply network.