| Summary: | Fuel pellet has become one of the largest traded solid biomass
commodities in the global market. The booming fuel pellet market especially
in Europe, America and other Asian countries like South Korea and Japan are
influenced by various factors including public policies on renewable energy to
mitigate climate change, market characteristics, economic factors, and fuel
pellet properties. In response to the newly emerging fuel pellet market
worldwide, Malaysia has set the aim to position itself as the largest exporters
of fuel pellets, especially in Asia. This review looks into the current fuel pellet
market situation to describe the role that Malaysia plays in the global market
and highlights the opportunities and challenges present for a viable fuel pellet
industry in Malaysia based on a review of related kinds of literature. Results
showed that Malaysia is still far behind the national target and global rival
especially from neighboring countries such as Vietnam and Indonesia in terms
of export performance. Nevertheless, the potential for developing the fuel pellet
industry is particularly evident in Malaysia given the abundance of biomass
resources, supportive government policies and incentives, and strong global
demand for fuel pellets. Some of the challenges that need to be addressed for
developing a viable fuel pellet industry include attracting foreign investment,
increasing market competitiveness, improving efficiency in terms of logistics
and supply chain, complying with technical and sustainability fuel pellet
standards, and publishing the statistic of fuel pellet trade, price, and knowledge
to the public.
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