Japanese Firm Pilots Cashew Shell Fuel Project in Cambodia

PHNOM PENH, May 12, 2026 (KPT) — A Japanese company has launched a pilot project in Cambodia to convert cashew nut shells into fuel and charcoal, aiming to boost value‑added processing in the country’s fast‑growing cashew industry, officials said Tuesday.

Top Planning Japan (TPJ) is advancing the initiative under a support framework from the Japan Cooperation Center for Petroleum and Sustainable Energy (JCCP), in coordination with Cambodia’s Ministry of Industry, Science, Technology and Innovation.

Project lead Dr. Okamura said the company has developed a heating‑based extraction technology that recovers most of the oil contained in cashew shells while carbonizing the remaining residue into charcoal.

Unlike conventional compression methods, which leave residual oil and require multiple refining stages, the new system is designed to improve recovery efficiency and generate additional by‑products.

Okamura noted the recovered oil could theoretically be blended with diesel at a ratio of up to 30 percent, offering potential future use as an alternative fuel source.

Cambodia’s cashew industry has expanded rapidly but remains reliant on exports of raw nuts and primary processing, limiting domestic value retention. Industry experts cite high electricity and logistics costs, limited equipment and shortages of skilled labor as key challenges, underscoring the need for processors to diversify revenue beyond kernel exports.

TPJ plans to introduce a test machine in Cambodia in the second half of 2026 with a production capacity of 200 liters per day. The project has drawn attention from Cambodian authorities as part of broader efforts to promote industrial upgrading, by‑product utilization and alternative energy development.