CAC News
Feasibility study targets large-scale extraction of cashew shell liquid for renewable energy

Kampong Thom, November 3, 2025 — The Cashew Nut Association of Cambodia (CAC) held a high-level meeting on November 3, with representatives from the Plant Engineering Center of the South Korean Institute for Advanced Engineering (IAE) to discuss a potential collaboration on biofuel production derived from cashew nut shell, Cashew nut Shell Liquid (CNSL).

The initiative is part of IAE’s ongoing feasibility study on biofuel extraction from cashew shells — a byproduct of cashew nut processing that contains high-value oil suitable for renewable energy applications.

CAC President Silot Uon welcomed the collaboration, describing it as a “strategic opportunity” to add value to Cambodia’s cashew sector and promote sustainable energy solutions. “This initiative could help Cambodia make better use of agricultural byproducts while opening new investment channels,” he said.

Showcasing Local Capacity

To support IAE’s study, CAC arranged visits for the South Korean team to several leading local companies, including Mirarth Agritech Co., Ltd, Pinex Agro Co., Ltd, and TL Agri Food Co., Ltd. The visits allowed IAE to observe local cashew processing operations and assess the availability of raw materials.

IAE representatives noted that they are seeking access to around 40 tons of cashew shells per day to support their oil extraction and research activities.

The project is backed by financial support from the South Korean government, underscoring its significance as a renewable energy investment venture. According to IAE, a pilot project is scheduled to launch by April 2026, signaling a strong commitment to advancing this biofuel initiative in Cambodia.

Strengthening Institutional Collaboration

To gain further insight into Cambodia’s cashew industry and regulatory landscape, CAC recommended that IAE engage with the Department of Agro-Industry (DAI) under the Ministry of Agriculture, Forestry and Fisheries (MAFF). The meeting is expected to provide key data to guide the project’s development and ensure alignment with national policies.

CAC Vice-President Suy Kokthean reaffirmed CAC’s readiness to support IAE throughout the investment process. “We are committed to creating a favorable environment for investors and will work closely with authorities to ensure smooth implementation,” he said.

Expanding Cooperation

In addition to local engagement, CAC President Silot Uon proposed that IAE meet with the Korea Trade-Investment Promotion Agency (KOTRA) at the Korean Embassy in Phnom Penh to further strengthen bilateral cooperation.

Silot emphasized the broader economic and social impact of such partnerships. “All investments should not only be profitable but also create meaningful job opportunities for Cambodians and contribute to local economic development,” he said.

If successful, the cashew-based biofuel project could represent a new chapter in Cambodia’s agricultural innovation—transforming waste materials into sustainable energy.