Six Chinese Firms Eye Cambodia’s Cashew Potential for Green Energy Revolution

• 7 January 2024
• Local News
• 3207 Views

In a groundbreaking development for Cambodia’s agro-industrial landscape, six prominent Chinese companies have expressed keen interest in establishing cashew processing plants in the country, with a unique focus on transforming cashew shells into Cashew Nut Shell Liquid (CNSL). This revelation comes from the Cashew Nut Association of Cambodia (CAC), adding a promising chapter to the nation’s growing reputation in the cashew industry, as reported by the Phnom Penh Post on 1 January 2024.

CNSL, a by-product of cashew processing, holds immense value as a renewable, biodegradable, and cost-effective biofuel. Recognised globally as an eco-friendly alternative to petro-diesel, CNSL is garnering attention for its potential in environmentally-conscious markets such as Japan, South Korea, and the European Union.

Uon Silot, President of CAC, shared this encouraging news during the groundbreaking ceremony for Singapore’s new processing plant on 1 January. Silot highlighted those Chinese investors, captivated by Cambodia’s abundant cashew supply, are particularly interested in establishing processing plants dedicated to converting cashew shells into high-quality fuel.

“This is an encouraging development for Cambodia, and I hope the company maintains communication with us. If they are interested in establishing a factory, we have ample land available for their investment in construction,” stated Silot, emphasising the robust support from the government, the Council for the Development of Cambodia (CDC), and provincial authorities.

The interest from Chinese companies spans various types of factories, including cashew processing plants and facilities specializing in converting cashew shells into fuel. Silot expressed optimism, stating, “I am optimistic that these companies will make favourable decisions in 2024-2025.”

For Cambodian farmers, this development signifies positive news, as increased local processing plants can reduce the export of raw cashew kernels to neighbouring countries. Moreover, it enhances Cambodia’s value addition in the cashew industry, fostering economic growth.

The CAC’s report reveals that in the first 11 months of 2023, Cambodia produced 645,000 tonnes of raw cashew nuts, with 617,000 tonnes exported to Vietnam, amounting to US$834 million.

Despite the substantial revenue generated, this marked a 16.9% decrease compared to the same timeframe in 2022.

According to the CAC, the average price of dried nuts during this period stood at US$1,658 per tonne. In a more detailed breakdown for November, the price of dried nuts exhibited a range between 7,000 and 7,700 riel per kilogramme, equivalent to approximately US$1.71 to US$1.88. This translates to an average of about US$1,800 per tonne.

The association envisions a shift towards greater local processing, further solidifying Cambodia’s position as a key player in the global cashew market.

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• Economy and Finance