Malaysian biomass producer Weng Yat Resources Sdn Bhd has signed a memorandum of understanding (MoU) with Japan-based Daya Synergy Borneo Co Ltd (DSB) to establish a biomass supply platform for Japan. The agreement, signed in Kuala Lumpur, targets more than RM60m in annual revenue once full-scale exports commence early next year.
The initial trial shipment of 10,000 metric tonnes of wood pellets is set for this year, with commercial shipments expected to start in January 2027. Weng Yat aims to capture a five per cent share of Japan’s biomass import market over the next three years, according to executive director Sunderaj Nagalingam.
The partnership supports Japan’s renewable energy and decarbonisation goals by strengthening biomass fuel supply chains. Japan’s biomass demand includes approximately seven million tonnes of palm kernel shells (PKS) and nine million tonnes of wood pellets annually. DSB will facilitate market access for Weng Yat, leveraging its trade relationships with Japanese biomass trading companies and power producers.
Weng Yat operates biomass production facilities across Malaysia, with a strategy focused on converting biomass materials into exportable fuel products. The company plans to expand its production capacity with a new EFB pellet line and a facility in Kapar, Klang, by 2027.
DSB’s representative director, Hideki Takizawa, highlighted the agreement as a foundation for long-term cooperation between Malaysian suppliers and Japanese buyers. “Today is not just the signing of an MOU but a memorable first step in a new relationship based on trust, mutual respect, and a shared vision for the future,” he stated.
