SIBU, Sept 17 — The state government is studying the possibility of using wood pellets to generate additional energy for Sarawak, Premier Tan Sri Abang Johari Openg said tonight.

He 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 megawatts of energy from wood pellets,” he said at dinner to mark the 63rd anniversary of the Sarawak Central Chiang Hsia Huang Clan Association here.

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 said.

"If we produce more, we sell it as our export item. This is a new area of business for us,” he said.

He said the fast growing trees will also produce oxygen, apart from becoming the feedstock to produce wood pellets to generate renewable energy.

He noted that banks throughout the world give emphasis on environmental, social, and governance (ESG) before they agree to provide funding for any business that produces energy.

"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,” he said.