Weng Yat Resources To Supply Biomass To Japan From 2027
KUALA LUMPUR, June 11 (Bernama) -- Biomass producer, Weng Yat Resources Sdn Bhd, has signed a memorandum of understanding with Japan-based Daya Synergy Borneo Co Ltd (DSB) earlier today to establish a biomass supply platform for Japan, with commercial shipments expected to begin early next year.
Weng Yat Resources’ executive director, Sunderaj Nagalingam said long-term supply agreements are targeted to be finalised by the end of this year, with commercial shipments commencing in January 2027, following an initial trial shipment of 10,000 metric tonnes of wood pellets this year.
In a statement today, he said the company is targeting to capture a five per cent share of Japan's biomass import market within the next three years -- a substantial opportunity, given the sheer size and growing demand of the Japanese biomass sector.
The 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.
Under the partnership, DSB will coordinate market access into Japan for Weng Yat Resources, drawing on its existing trade relationships with biomass trading companies and power producers developed through its PKS export activities from Sabah.
Sunderaj said the agreement reflects the company’s focus on converting biomass materials into exportable fuel products.
Meanwhile, DSB representative director, Hideki Takizawa said the agreement lays the groundwork for longer-term cooperation and market access between Malaysian suppliers and Japanese buyers in the biomass sector.
Established in 2007, Weng Yat Resources is involved in biomass production and other industrial activities, including automotive and scaffolding.
Its operations include a wood waste collection centre in Klang, Selangor, where collected material is directed into biomass production.
The group operates biomass facilities across Peninsular Malaysia and Sarawak. Its plant in Tronoh, Perak, produces about 6,000 metric tonnes of wood pellets per month.
Expansion plans include a new EFB pellet line with a production capacity of 5,000 metric tonnes per month, which is expected to be operational by 2027, and a facility in Kapar, Klang, which will boost wood pellets, sawdust and wood chips production capacity upon its completion next year.
-- BERNAMA