Detik and Global to export pellets to Asia
Two Malaysian companies Detik Aturan and Global Green Synergy have both secured contracts to supply wood pellets to different Asian markets.
Under a new agreement, Detik plans to export 20,000 tonnes a month of pellets to South Korea's BC21 Co. by the middle of next year. BC21 hopes to be consuming 5 million tonnes per year by 2015.
As part of its agreement with China Light (GuangZhou) Import and Export Corp., Global Green will supply 5,000 tonnes of pellets a month to the company. This figure is expected to rise to 20,000 tonnes during the first quarter of 2014.
Asia's demand for biomass pellets is growing as the governments continue to support the industry through the implementation of green energy policies. Consumption in the region could reach 10 million tonnes a year by 2020.