Chinese Firms Explore Cashew Biofuel Production in Cambodia
Six Chinese companies are seeking to establish cashew processing facilities in Cambodia, focusing on converting cashew shells into biofuel. This initiative aligns with growing demand for eco-friendly fuels in markets such as Japan and the EU, potentially enhancing Cambodia's agro-industrial landscape.
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Six Chinese companies are pursuing investment in cashew processing plants in Cambodia, particularly for converting cashew shells into biofuel. The Cashew Nut Association of Cambodia (CAC) indicates that these companies aim to meet the demand for biofuels in environmentally conscious markets like Japan and South Korea.
In 2023, Cambodia produced 645,000 tonnes of raw cashew nuts, with a significant portion exported to Vietnam. The CAC expects favorable decisions from investors by 2024-2025, supported by government backing.
Increased local processing could limit raw kernel exports and enhance value addition within Cambodia's agriculture sector. The average price for dried cashew nuts was approximately $1,658 per tonne in late 2023.
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