Malaysia is seeking to become Asia’s major wood pellets provider. Driven by the growing demand in Japan, China and South Korea, which are currently implementing renewable energy policies, the Malaysian authorities are planning to cover up 70% of the total Asian wood pellets demand by 2020.
Chief Executive Officer of Agensi Inovasi Malaysia (AIM), Mark Rozario, says that by 2020, the Asian demand for pellets is estimated to grow at around 10 million tons per year. At the present, Malaysia is producing nearly 100,000 tons of pellets every year, but Mr. Rozario holds that in five years the production has a potential to reach between 5-7 million tons/per year.
Recently, a new organization was formed in Malaysia, the Pellet Association of Malaysia (PAM), which aims to gather manufacturers on issues like quality, pricing and volumes. Moreover, Malaysia has developed a plan, the National Biomass Strategy-2020, for helping the pellet industry to reach the proposed targets.