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In Laos, people traditionally burn coal and wood as fuel to heat up stoves, causing air pollution and health threats. The World Bank of Laos plans to subsidize the small burner stoves that use biomass pellet fuel, but such pellets need to be locally made. Chanpheng Rice Mill produces 20 to 30 tons of rice hulls each day. These husks are sold to farms nearby as fertilizers and animal feeds for very cheap prices. The rice mill intends to invest USD100,000 to purchase a biomass granulator to make pellet fuel out of recycled rice hulls.

Through the Green Technical Service Team’s referral, Chanpheng Rice Mill was highly interested in the biofuel machinery offered by Taiwan-based vendor, Fu-Ting Green Energy Technology Corp. Fu-Ting Corp. will prepare a quote for its 500kg/hour granulator to the rice mill after the company representative comes back from the Laos trip. The biofuel machinery maker plans to submit a joint application with Chanpheng to APO for the demonstration project subsidy. In the long run, the company plans to ride on the wave of the new demand for the World Bank’s small burner stove, explores and expands the biofuel market in Laos.