Malaysian biomass producer Weng Yat Resources Sdn Bhd has entered into a partnership with Japan-based Daya Synergy Borneo Co Ltd (DSB) to establish a biomass supply platform aimed at the Japanese market. The agreement, formalised through a memorandum of understanding signed in Kuala Lumpur, is expected to generate over RM60m in annual revenue once full-scale exports commence.
The initial commercial shipment is slated for early next year, with long-term supply agreements anticipated by the end of this year. An initial trial shipment of 10,000 metric tonnes of wood pellets is planned for this year, according to Weng Yat Resources’ executive director, Sunderaj Nagalingam. The company aims to capture a five per cent share of Japan’s biomass import market within three years.
The partnership will bolster Japan’s biomass power generation sector, which relies heavily on imported biomass fuels such as wood pellets, palm kernel shells (PKS), and Empty Fruit Bunch (EFB) pellets. Japan’s demand for biomass is substantial, with an estimated seven million tonnes of PKS and nine million tonnes of wood pellets required annually.
DSB will facilitate market access for Weng Yat Resources, leveraging its established trade relationships with Japanese biomass trading companies and power producers. The collaboration also includes energy-related projects, such as a proposed 100MW Battery Energy Storage System in Hokkaido, valued at approximately $300m.
Weng Yat Resources, established in 2007, operates biomass production facilities across Malaysia. The company plans to expand its production capacity with new facilities in Klang and Sarawak by 2027.
