TAIPEI (Taiwan News) — On a scorching summer day in Nantou County, machines at Pacific Environment Biotech roar as wood debris transforms into biomass pellets.

“We’re combining tradition with innovation,” second-generation successor Chiu Hsin-jung (邱信榮) said, per CNA. His father, Chiu Sen-yu (親邱森), founded the company with NT$6 million (US$200,000) and later took it public.

After retiring, Chiu Sen-yu launched two new ventures, Heng Yuan Green Energy Technology and Pacific Environment Biotech, to tackle Taiwan’s growing wood waste problem.

Since 2022, the two firms have produced 26,000 metric tons of wood pellets annually. Chiu said burning the pellets releases CO2 equivalent to what the trees absorbed, making the fuel carbon-neutral.

Still, making wood pellets is a 24/7 operation involving grinding, drying, moisture control, and precision shaping. Chiu explained that heat and pressure transform lignin in the wood into dense, burnable form. “It’s a physical change, not chemical,” he added.

Each pelletizer uses 90 kW of electricity per hour, and the factory now runs larger 250 kW machines to boost output. “The energy bills are staggering,” Chiu said, but AI-driven optimization is already helping them cut more than NT$1 million a year.

Additionally, he said the firm invested nearly NT$10 million in a negative pressure system that draws in airborne dust. It prevents particles from spreading by channeling them into filtration ducts.

The agriculture ministry estimated that Taiwan generates about 5 million metric tons of agricultural biomass waste each year. Turning that into energy avoids open burning and reduces landfill loads.

Major manufacturers like fabric weaver Li Peng and paper maker Cheng Loong are adopting biomass to replace coal in their boilers. The switch helps lower emissions while supporting Taiwan’s circular economy.