Dutch probe finds RWE’s Malaysian wood pellets may breach sustainability rules

A police pre-investigation is examining RWE’s procurement of wood pellets from Malaysia for its Amercentrale and Eemscentrale plants after the Dutch Emission Authority (Nea) found indications that the biomass may not be sustainable. The inquiry was triggered by the NGO Comité Schone Lucht, which obtained internal Nea documents showing that RWE relies on “self-declarations” from suppliers, most notably Rainbow Pellet, to certify the material as waste-derived “category 5” wood.

Because waste wood is exempt from deforestation safeguards, the classification allows the pellets to qualify for billions of euros in government subsidies. Nea’s limited audit of four suppliers suggested a small share of the wood was incorrectly labelled, but the agency concluded the overall impact was limited, a view contested by environmental groups. Local officials in Malaysia’s Pahang and Kelantan report severe forest loss, flooding and wildlife incursions linked to logging.

Minister of Climate and Green Growth Sophie Hermans told parliament the pellets meet Dutch sustainability requirements, while the Dutch Food and Consumer Product Safety Authority (NVWA) is preparing a possible enforcement action for alleged breaches of anti-deforestation law. RWE says it is cooperating with authorities and reviewing its supply chain.