Malaysian biomass producer Weng Yat Resources Sdn Bhd has signed a deal to build a biomass supply platform for Japan, targeting more than RM60 million in annual revenue once full-scale exports begin.
Commercial shipments are expected to commence in early next year.
The company signed a memorandum of understanding (MoU) with Japan-based Daya Synergy Borneo Co Ltd (DSB) in Kuala Lumpur today to strengthen biomass fuel supply chains in support of Japan’s renewable energy and decarbonisation policies.
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
today, formalising a partnership to develop a biomass supply platform for the Japanese market.
“Long-term supply agreements are targeted to be finalised by the end of this year, with commercial shipments commencing in January 2027. This follows an initial trial shipment of 10,000 metric tonnes of wood pellets this year,” said Weng Yat Resources executive director Sunderaj Nagalingam during the signing ceremony.
The initial shipment will serve as a trial run before both parties scale up to a larger recurring monthly supply arrangement upon successful implementation.
Sunderaj said the company is targeting a five per cent share of Japan’s biomass import market over the next three years, noting that even a small market share represents a significant opportunity given the size of the market.
The platform is intended to support Japan’s biomass power generation sector, which relies on imported biomass fuels such as wood pellets, palm kernel shells (PKS), and Empty Fruit Bunch (EFB) pellets as part of its decarbonisation efforts.
Japan’s biomass demand is estimated at approximately seven million tonnes of PKS and nine million tonnes of wood pellets annually, with EFB pellets emerging as a growing segment driven by feedstock availability and cost advantages.
Under the partnership, DSB will facilitate market access into Japan for Weng Yat Resources, leveraging its existing relationships with biomass trading firms and power producers established through PKS export activities in Sabah.
DSB is also involved in energy-related projects, including a proposed 100MW Battery Energy Storage System in Hokkaido, valued at approximately US$300 million.
Weng Yat Resources currently operates biomass production facilities across Malaysia, supplying industrial users and international buyers.
Its biomass feedstock strategy includes long-term supply agreements with 24 palm oil mills nationwide, targeting an estimated one million metric tonnes of Empty Fruit Bunch annually.
Sunderaj said the agreement reflects the company’s ongoing commitment to converting biomass waste into exportable fuel products.
“Work is progressing across our operations, with projects at different stages — from construction to equipment installation — while agreements are being finalised. Our focus remains on turning biomass materials that were once discarded into value-added products. This principle continues to define what we do,” he said.
Meanwhile, DSB representative director Hideki Takizawa described the agreement as a foundation for long-term cooperation and stronger market access between Malaysian suppliers and Japanese buyers in the biomass sector.
“Today is not just the signing of an MoU, but a meaningful first step in a new relationship built on trust, mutual respect, and a shared vision for the future. We believe DSB can serve as a bridge between Weng Yat Resources and the Japanese market — not only for PKS, wood pellets, and EFB pellets, but also for broader business opportunities in the future,” he said.
Established in 2007, Weng Yat Resources is involved in biomass production and other industrial sectors, including automotive and scaffolding, with a reported combined turnover of approximately RM150 million.
The company also operates a Wood Waste Collection Centre contract in Klang District under the Klang City Council, where collected materials are channelled into biomass production.
Its biomass facilities span Peninsular Malaysia and Sarawak, including a Tronoh, Perak plant that produces approximately 6,000 metric tonnes of wood pellets monthly.
Expansion plans include a new EFB pellet production line with a capacity of 5,000 metric tonnes per month, expected to be operational by 2027, as well as a facility in Kapar, Klang, which will increase production capacity for wood pellets, sawdust, and wood chips upon completion in 2027.
