MALAYSIAN biomass producer Weng Yat Resources Sdn Bhd has sealed a deal to build a biomass supply platform for Japan with more than RM60 mil in the annual revenue pipeline once full-scale exports commences. The commercial shipment is expected to commence early 2027.
A memorandum of understanding (MOU) was inked on June 10 between the company and Japan’s Daya Synergy Borneo Co Ltd (DSB) in Kuala Lumpur aimed at strengthening biomass fuel supply chains to support Japan’s renewable energy and decarbonisation policies.
“Long-term supply agreements are targeted to be finalised this year-end by with commercial shipments commencing in January 2027,” envisages Weng Yat Resources executive director Sunderaj Nagalingam.
“This follows an initial trial shipment of 10,000 metric tonnes of wood pellets this year.”
Weng Yat Resources Sdn Bhd’s executive director Sunderaj Nagalingam
The initial shipment will serve as a test run before both parties scale up to a larger recurring supply arrangement on a monthly basis upon successful implementation.
Eventually, Weng Yat Resources is targeting a 5% share of Japan’s biomass import market over the next three years – a huge figure given the market size, according to Sunderaj.
The existing platform is intended to support Japan’s biomass power generation sector which relies on imports of biomass fuel including wood pellets, palm kernel shells (PKS) and empty fruit bunch (EFB) pellets as part of its decarbonisation efforts.
Japan’s biomass demand is estimated to include around seven million tonnes of PKS and nine million tonnes of wood pellets annually with EFB pellets identified as a growing segment driven by feedstock availability and cost factors.
