Development of the Bioenergy Supply Chain in AZEC Partner Countries

With the growing demand for locally produced renewable energy in Southeast Asia, this report explores practical approaches to developing the bioenergy supply chain for the effective utilisation of bioenergy in Indonesia, Thailand, and Viet Nam. It maps the overall bioenergy supply and demand in each country, identifies key barriers, and presents policy recommendations to support the development of robust bioenergy supply chains. In Indonesia, while there is a surplus of biomass, challenges in storage and transportation highlight the need for pelletisation and improved logistics infrastructure. In Thailand, despite significant progress in biomass development, issues such as policy uncertainty in the biofuels sector, rising heat demand, and challenges in bioenergy-based power generation require greater regulatory coordination and market enhancement. In Viet Nam, the establishment of a sustainable bioenergy supply chain hinges on clear and consistent policy implementation, adequate financial support, and the active involvement of local governments and communities. In addition to country-specific findings, the report provides cross-country recommendations on policy frameworks, regulatory mechanisms, and business models to address shared challenges and accelerate the development of bioenergy supply chains across the AZEC partner countries.