en.Wedoany.com Reported - Malaysian biomass producer Weng Yat Resources Sdn Bhd has signed a Memorandum of Understanding (MoU) with Daya Synergy Borneo Co Ltd (DSB), a trading company focused on the Japanese market, to jointly build a biomass supply platform for Japan, with the first trial shipment of 10,000 metric tonnes of wood pellets scheduled for 2026. The MoU was signed at the Malaysian Petroleum Club in Kuala Lumpur, aiming to strengthen the biomass fuel supply chain supporting Japan's renewable energy and decarbonization policies.
Japan's biomass power generation industry is heavily reliant on imports, with an estimated annual demand of approximately 9 million metric tonnes of wood pellets and 7 million metric tonnes of palm kernel shells (PKS). Empty fruit bunch (EFB) pellets are considered a growing segment driven by feedstock availability and cost factors. If the initial trial shipment is successful, both parties plan to expand the scale of cooperation and reach a regular monthly supply arrangement.
Under the agreement, DSB will be responsible for coordinating Weng Yat Resources' entry into the Japanese market, leveraging its established relationships with Japanese biomass traders and power producers developed through exporting palm kernel shells (PKS) from Sabah state.
Weng Yat Resources operates biomass production facilities in Malaysia, with long-term supply agreements with 24 palm oil mills, targeting an annual production of approximately 1 million metric tonnes of empty fruit bunches (EFB). Its plant in Tronoh, Perak, currently produces about 6,000 metric tonnes of wood pellets per month. Its expansion plans include a new production line for empty fruit bunch (EFB) pellets with a monthly capacity of 5,000 metric tonnes, as well as a plant in Kapar, Klang, both projects expected to be operational by 2027.
Executive Director Sunderaj Nagalingam stated that the collaboration reflects the company's strategy of converting previously discarded biomass materials into exportable fuel products. DSB Representative Director Hideki Takizawa said the agreement lays the foundation for long-term cooperation, with DSB acting as a bridge between Malaysian suppliers and Japanese buyers across multiple biomass fuel types.
Founded in 2007, Weng Yat Resources reported a total turnover of approximately RM150 million, with business operations also extending to the automotive and scaffolding industries.
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