The state government of Sarawak in Malaysia is studying the possibility of utilizing wood pellets to generate additional energy, according to Premier Abang Johari.
Abang Johari said he recently led a delegation to visit a factory in Norway that turns timber waste into wood pellets.
“In London, England, they produce 2,500 MW of energy from wood pellets,” he said at the event to mark the 63rd anniversary of the Sarawak Central Chiang Hsia Huang Clan Association.
Abang Johari said he believes that Sarawak can produce green energy by turning wood waste into wood pellets.
“We plant and re-plant our degraded forest areas with new fast-growing species that will become a feedstock for wood pellets for us to produce additional power to our grid,” he explained.
He continued, “If we produce more, we sell it as our export item. This is a new area of business for us,” he said.
Abang Johari also mentioned that the fast-growing trees will also produce oxygen, in addition to becoming the feedstock for producing wood pellets to generate renewable energy.
He pointed out that banks around the world emphasize on environmental, social, and governance (ESG) factors before agreeing to provide funding for any energy-producing business.
“If your business is on energy and it emits a lot of carbon, the banks may be reluctant to give funding to you because the international banking community will fund projects that are relevant to the present issue of climate change.” Abang Johari said.
