Malaysian biomass producer Weng Yat Resources Sdn Bhd and Japan-focused trading company Daya Synergy Borneo Co Ltd (DSB) have signed a memorandum of understanding to develop a biomass supply platform for the Japanese market, with an initial trial shipment of 10,000 metric tonnes of wood pellets planned for 2026.
The MoU was signed at the Malaysian Petroleum Club in Kuala Lumpur and is intended to strengthen biomass fuel supply chains supporting Japan's renewable energy and decarbonisation policies. If the initial shipment proceeds successfully, both parties plan to scale up to a recurring monthly supply arrangement.
Japan's biomass power generation sector is heavily import-dependent, with annual demand estimated at around nine million tonnes of wood pellets and seven million tonnes of palm kernel shells (PKS). Empty fruit bunch (EFB) pellets are identified as a growing segment driven by feedstock availability and cost.
Under the agreement, DSB will coordinate market access for Weng Yat Resources, drawing on existing relationships with Japanese biomass trading companies and power producers developed through its PKS export activities from Sabah.
Weng Yat Resources operates biomass production facilities across Malaysia and holds long-term supply agreements with 24 palm oil mills targeting around one million metric tonnes of EFB annually.
Its Tronoh, Perak plant currently produces approximately 6,000 metric tonnes of wood pellets per month. Expansion plans include a new EFB pellet line with 5,000 metric tonnes monthly capacity and a facility in Kapar, Klang, both expected to be operational by 2027.
Executive director Sunderaj Nagalingam said the partnership reflects the company's focus on converting previously discarded biomass materials into exportable fuel products.
DSB representative director Hideki Takizawa said the agreement lays the groundwork for longer-term cooperation, describing DSB's role as a bridge between Malaysian suppliers and Japanese buyers across multiple biomass fuel types.
Established in 2007, Weng Yat Resources reported a combined turnover of approximately RM150 million and is also active in automotive and scaffolding sectors.
Malaysian biomass producer targets Japan market with wood pellet supply partnership
Sunderaj Nagalingam, Executive Director of Weng Yat Resources Group Berhad, and Hideki Takizawa, Representative Director of Daya Synergy Borneo Co., Ltd., exchanging documents at the Memorandum of Understanding (MoU) signing ceremony in Kuala Lumpur, formalising a partnership to develop a biomass supply platform for the Japanese market.
