Chief Executive Officer of Agensi Inovasi Malaysia, Mark Rozario, said the country has an advantage in terms of logistics and cost of transportation, which were usually dominated by pellet producers from US and Europe.
"We want to grab this opportunity and with the establishment of the Pellet Association of Malaysia (PAM) earlier, we have united the manufacturers on issues such as quality, pricing and volumes," he told reporters after the briefing on the progress of the National Biomass Strategy 2020 here Wednesday.
Rozario said demand for biomass pellets in Asia by 2020 was estimated to be around 10 million tonnes per year, mainly driven by renewable energy policies in certain countries.
"Right now, Malaysia produces about 100,000 tonnes per year and there is room for us to increase our capacity following the plan to collaborate with more plantation owners to supply the feedstocks," he said.
He said Malaysia could produce about five-seven million tonnes per year of pellets in the next five years.
Rozario said PAM now has 10 members and five of them had started production of the biomass pellets.
He said the agency was ready to attract more players to invest in this industry.
Earlier, Malaysia biomass pellet manufacturers inked deals with companies from China and South Korea to supply biomass pellets to help meet their countries' renewable energy targets.
Detik Aturan Sdn Bhd signed the memorandum of understanding with South Korea's BC21 Co Ltd and Global Green Synergy Sdn Bhd with Chinalight (GuangZhou) - Bernama