KUCHING: Samling Strategic Corporation Sdn Bhd has signed a Letter of Intent (LOI) with Japan’s Kobe Steel Ltd to develop a woody black pellet industry in Sarawak, with the aim of establishing a regional hub for renewable energy.
The agreement, signed on August 18 in Kuala Lumpur, sets out plans for a comprehensive feasibility study on black pellet production facilities in the state.
In a statement, Samling said that the study will examine the potential for large-scale production using Sarawak’s sustainably managed woody resources, backed by Kobe Steel’s technology and bioenergy expertise.
It stated that the outcome would determine the design and scale of state-of-the-art plants supported by integrated logistics infrastructure.
“Black pellets are an advanced biomass fuel designed to replace coal in power generation and industrial heat production.
“The initial production capacity targeted under the study is 300,000 metric tonnes per year, with the prospect of increasing to one million tonnes and eventually two million tonnes.
“Kobe Steel intends to use the fuel in its steelmaking processes as part of efforts to lower carbon emissions,” it said.
Witnessing the signing of the agreement, Deputy Minister for Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, said the venture aligns with Sarawak’s Post COVID-19 Development Strategy 2030, which promotes new green industries.
“By turning sustainable woody biomass into a high-value renewable energy source, we are demonstrating our commitment to environmental stewardship and a circular economy,” he said.
Samling’s Chief Executive Officer, Lawrence Chia, said the initiative builds on the group’s experience producing white pellets in Sarawak for export to Japan.
“This venture represents a natural extension of that capability, moving us further down the value chain to produce black pellets,” he said.
Kobe Steel Executive Officer, Sumikazu Hoda, said the LOI strengthens cooperation in a field with long-term growth potential.
“This initiative goes beyond technological innovation. It contributes to revitalising local economies and advancing the global transition to a decarbonised society,” he said.
