The study will examine the technical, commercial and supply‑chain viability of producing sugars for bioethanol from cashew apples, a by‑product of cashew nut harvesting.
It will also evaluate whether residues generated during the sugar production process can be further converted into bio‑based fuels such as biodiesel or sustainable aviation fuel (SAF).
This is aligned with Vietnam’s plans to move towards the mandatory blending of bioethanol into gasoline.
This has been accelerated as the Iran war drives up energy prices, increasing demand for stable, sustainable bioethanol feedstocks, particularly those that do not compete with food supplies.
Securing a reliable source of non‑edible biomass feedstock has become a critical national challenge, and the use of agricultural residues aligns closely with this policy direction.
The study will be conducted through February 2027 and will be supported in part by Japan’s Ministry of Economy, Trade and Industry (METI).
Through the deployment of Japan’s advanced biomass utilisation and sugar production technologies, Sumitomo Forestry aims to test whether these technologies can be adapted and scaled in Vietnam.
With this project, it aims to assess whether a commercially viable business model can simultaneously support decarbonisation goals and local economic development.
Extracting value from waste
Vietnam is one of the world’s leading producers and processors of cashew nuts.
While the nuts themselves are of high economic value, the cashew apples generated from the harvesting has little value.
They are discarded in large volumes across Vietnam due to lack of processing pathways or market demand, representing a large, untapped biomass resource.
The project is a response to the underutilisation of agricultural by‑products and waste in Vietnam.
By turning discarded biomass into energy resources, the initiative seeks to support the country’s low‑carbon transition while also creating new economic value streams.
It addresses structural challenges in Vietnam, where unused biomass and agricultural waste remain largely untapped as resources despite growing energy demand and emerging low‑carbon fuel policies.
The study will assess methods for collecting these residues, analyse their quality and suitability as raw materials, and verify sugar production processes and output quality for bioethanol use.
The feasibility study will also include a comprehensive assessment of the commercial viability of the entire value chain, spanning raw material procurement, processing, logistics and downstream product sales.
On a mission
Previously, Sumitomo Forestry has worked to utilise cashew trees as raw materials.
It has manufactured particleboards using old cashew trees aged which are felled when productivity declines.
By extending utilisation beyond the timber itself to include cashew apples, the group aims to advance a cascade utilisation model in which every part of the cashew tree is put to productive use.
This approach is intended to maximise resource efficiency while increasing the overall added value derived from agricultural and forestry assets.
