JAPAN’S JFE Shoji Group and Malaysia’s bioenergy-based Elridge Energy Holdings Bhd via the latter’s subsidiary BioEneco have signed a long-term memorandum of understanding (MoU) to supply 150,000 metric tonnes (MT) of Green Gold Label (GGL)-certified palm kernel shell (PKS) biomass annually starting in April 2025.

This partnership supports Japan’s renewable energy (RE) goals by securing sustainable fuel, advancing carbon neutrality and boosting Malaysia’s biomass export role.

“This MoU marks a RE milestone, not just for Japan but for the entire biomass market, thus ensuring a consistent supply of sustainably certified biomass from Malaysia,” JFE Shoji Group managing director Takeshi Sudo told FocusM after the MOU inking with Elridge Energy.

Japan has become a major player in the global biomass market, importing significant amounts of biomass fuel like PKS and wood pellets.

Following the 2011 Fukushima disaster, Japan’s energy policy has pivoted towards renewables with the aim of achieving carbon neutrality by 2050. The country’s Sixth Strategic Energy Plan places biomass as a cornerstone of the country’s RE mix.

“Our collaboration aligns perfectly with Japan’s commitment to carbon neutrality and strict sustainability standards,” noted Sudo.

For Malaysia, the deal presents an opportunity to strengthen its reputation as an eco-conscious renewable energy supplier.

Elridge Energy CEO Oliver Yeo emphasised the mutual benefits: “This partnership reflects Japan’s trust in our production capabilities and enhances Malaysia’s role as a key RE supplier,” he asserted.

Elridge Energy through BioEneco has the GGL certification which reflected the group’s dedication to sustainability and lawful sourcing. Malaysia’s abundance of biomass resources positions it as a critical player in meeting global RE demands.

Under its agreement, Elridge will supply the JFE Shoji Group with 150,000 MT of GGL-certified PKS annually from April 2025 to March 2040.

The collaboration will support Japan’s Green Transformation Basic Policy which promotes industrial decarbonisation and energy-efficient technologies. Japan plans to mobilise 150 tril yen (RM4.9 tril) in investments over the next decade under this initiative.

With global demand for renewable resources rising, both Japan and Malaysia stand to benefit. Elridge is expanding operations to meet this demand by enhancing its existing production at its Kapar facility while developing new sites in Pasir Gudang (Johor), Kuantan (Pahang) and Lahad Datu (Sabah).

“We aim to strengthen local partnerships, expand into international markets and innovate our biomass products,” added Yeo.

The collaboration between JFE Shoji and BioEneco signifies a crucial step forward in global RE practices with both Japan and Malaysia contributing to a sustainable energy future.

At the close of today’s (Nov 4) market trading, Elridge was unchanged at 48 sen with 25.21 million shares traded, thus valuing the ACE Market-listed company at RM960 mil. – Nov 4, 2024

https://focusmalaysia.my/japan-malaysia-biomass-partnership-marks-renewable-energy-milestone/