Japan's 2MW Susono biomass plant starts construction

Market: Biomass, Electricity
15/10/24

Japan's 2MW Susono biomass-fired power plant in Shizuoka prefecture has started construction today, with the aim to begin commercial operations in October 2025.

The Susono plant will burn 27,000 t/yr of wood chips secured in Shizuoka to generate around 15 GWh/yr of electricity. Operating company Susono Biomass Power is held 50pc by Japanese utility Chubu Electric Power, 40pc by energy company ML Power, which is a subsidiary of financing firm Mizuho Leasing, and 10pc by renewable energy developer Prospec AZ.

Those companies plan to build three other biomass-fired power plants in Gunma, Nagano, and Niigata prefectures. Each plant is expected to come on line in November 2025, April 2026, and May 2027. The three 2MW plants will burn 27,000-29,000 t/yr of locally gathered wood chips to generate around 15 GWh/yr.

Chubu has invested in a number of biomass-fired power plants, including the 112MW Tahara in Aichi prefecture, which is currently under construction and aims to start commercial operations in September 2025.

By Takeshi Maeda

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

15/10/24

Lignite displaces gas in German power mix

London, 15 October (Argus) — Rallying German gas prices have pushed a significant amount of gas-fired generation out of the country's power mix this month, opening space for lignite. Average daily gas-fired generation in Germany has slipped to 3.8GW so far this month from 4.2GW in September and August and 4.1GW in July. During that time, lignite-fired generation climbed to 9GW from 7.2GW in September and August and 7.4GW in July. Coal-fired generation has also edged down to 2.9GW so far this month from just over 3GW in September, but higher than the averages of 2.3GW in August and 1.4GW in July. Meanwhile, supporting demand for thermal-fired generation, German renewables output has fallen to 30.3GW so far in October from just under 32GW in September when wind generation stepped up, but slightly above the 29.5GW in August when wind output was lower. Remaining German power demand in recent weeks has been covered by imports, which have risen to a net 3.8GW so far this month from 3.4GW in September, but remained well below the 6.2GW in August. Electricity imports from neighbouring countries such as France are occasionally cheaper than domestic generation and can help fill in gaps between German power demand and supply. A combination of changing renewable output, higher gas prices, stable lignite prices and lower emissions prices have spurred changes in the German power mix. The German THE day-ahead has risen strongly since late July and prices have rallied in recent weeks against a backdrop of rising geopolitical tensions in the Middle East. Meanwhile, German lignite-fired plants typically source fuel from nearby mines, substantially insulating domestic lignite prices from external market forces. German regulator Bnetza assumed earlier this year that domestic lignite would cost about €3/MWh in 2024-25. At the same time, near-term prices in the EU emissions trading system (ETS) — a key driver of competitiveness for German lignite-fired generation — have fallen. Prompt ETS allowances closed at €65.36/t of CO2 equivalent (CO2e) on Monday, down from €72.14/t CO2e on 19 August, boosting the profitability of lignite-fired plants, which are the more CO2 intensive than coal and gas. Those recent price shifts have made output from lignite-fired plants with a typical efficiency of 36pc more profitable than normal 55pc-efficient gas-fired plants as well as coal-fired stations operating at 40pc efficiency, which have also become more profitable . By contrast, in the first eight months of this year, 36pc-efficient lignite-fired plants had competed tightly with 55pc-efficient gas-fired plants even as gas prices fell to the bottom of the coal-to-gas fuel-switching range ( see fuel-switching graph ). Buffer zone More competitive lignite-fired generation has also started acting as the domestic buffer to cover gaps between supply and demand left by renewable generation ( see power generation graph ). After Germany renewable generation dropped to 26.8GW on 2-9 October from a strong 45.5GW on 26-28 September, lignite-fired generation jumped to 10.1GW from 6.4GW — a 57pc gain — while gas-fired output only rose to 3.5GW from roughly 3GW and coal-fired generation increased to 2.9GW from 2.3GW. In December-July, when the gas and lignite fuel-switching range was tight, generation from both fuels reacted similarly to fluctuations in renewable output and both plant types buffered their generation based on demand ( see power generation graph ). And forward prices assessed by Argus suggest that lignite-fired generation could remain competitive against gas and coal-fired output in the German power mix next month. As of market close on Monday, November-dated fuel and emissions prices would place the operating costs of a 36pc-efficient lignite-fired plant during that time below those of a 55pc-efficient gas-fired plant and a 40pc-efficient coal-fired plant. That said, Germany's decreasing lignite and coal-fired generation capacity limits how much of the national power mix those plant types can provide. As of April, Germany had 82.4GW of gas-fired capacity, but just 15.1GW of lignite-fired capacity and 11.5GW of coal-fired plants, according to Bnetza. By Lucas Waelbroeck Boix Fuel switching range €/MWh Power generation by fuel, 7 day average GW Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

India industries confident of 2030 renewable energy aim

14/10/24

News

14/10/24

India industries confident of 2030 renewable energy aim

Mumbai, 14 October (Argus) — Indian industries are confident about reaching the country's renewable energy target of 500GW by 2030, senior executives said at the Financial Times' Energy Transition Summit in New Delhi last week. This is especially given strong capacity installation of solar and wind projects in the coming years, delegates heard. India's renewable energy capacity stands at 199.5GW as of August, a rise of 12pc on the year, data from the Central Electricity Authority show. "India's [renewable] power sector has already grown at a [compound annual growth rate] of nearly 20pc in the last 10 years … The pace at which some of the bids are coming, we should reach 500GW by 2030," said domestic utility Tata Power's chief executive officer Praveer Sinha. A record 69GW of renewable energy tenders were issued during the April 2023-March 2024 fiscal year, surpassing the government-mandated target of 50GW. Tata Power is operating 4.5GW installed capacity of renewable energy that produced 64.6Th of electricity in the April 2023-March 2024 fiscal year. It aims to add another 5GW of installed capacity in the coming years, underscoring its commitment to providing round-the-clock renewable energy through solar, wind, and pumped hydro storage projects, Sinha added. Indian steel manufacturer ArcelorMittal Nippon Steel (AMNS) also plans to add 1GW/yr of renewable energy capacity for its captive power consumption, managing director Dilip Oommen said. AMNS has developed a 975MW hybrid renewable energy project at Alamuru village in India's southern state of Andhra Pradesh. The project will generate 661MW of solar and 314MW of wind power capacity, which will be integrated with a pumped hydro storage facility owned by renewables developer Greenko to overcome the intermittent nature of wind and solar power generation, ensuring round-the-clock power. Power generated from the solar and wind sites will be connected from Andhra Pradesh's Kurnool district via a 400kV interstate transmission system up to AMNS' Hazria facility. The firm is also considering using hydrogen in its electric arc furnace, but remains skeptical about the cost economics. "At present, the cost of hydrogen is $3.50/kg," Oommen said, adding that if this falls below $2/kg, it would be feasible for commercial use at its facilities. The reduction in the cost of renewable power generation over the last few years has also raised interest in the sector, incentivising the coal-dominated eastern regions of India to adopt renewables, said Indian independent power provider Ampin Energy's chief executive officer Pinaki Bhattacharya. The domestic steel sector, one of the country's largest carbon emitters, is looking at ways to reduce emissions in light of the policies under the EU's carbon border adjustment mechanism (CBAM), which will take effect on 1 January 2026. This was echoed during a session on 9 October when India's finance minister Nirmala Sitharaman noted that India has been consistent in promoting domestic investment in renewables and establishing transmission lines. But she described CBAM as "a trade barrier" that could hurt investment in India's heavy industries and hinderthe country's transition away from fossil fuels. CBAM is a "unilateral" and "arbitrary" measure, which would "not be helpful" for India, she said, adding that India's concerns "would definitely be voiced" with the EU. Her sentiments were in line with that of commerce minister Piyush Goyal, who said last year that India will not accept any unfair taxes on steel that the EU imposes under the CBAM. Coal to renewables switch "We are not on track yet to displace coal," said Indian not-for-profit thinktank Centre for Science and Environment's director general Sunita Narain, when asked about India's transition from coal to renewables, considering that coal still dominates the country's electricity mix. Renewable energy generation capacity has currently increased to 13pc of the total electricity mix, but the country needs to hit the 35pc target by 2030, she added. India's power generation continues to rely on coal because of an abundant supply of the fuel as well as its cheaper price over other alternatives. Out of India's total installed capacity of 451GW, coal comprises 48.27pc, followed by solar at 19.84pc and wind at 10.47pc, as of August, data from government think tank Niti Aayog show. By Ankit Rathore Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Erex starts building two biomass plants in Vietnam

11/10/24

News

11/10/24

Erex starts building two biomass plants in Vietnam

Tokyo, 11 October (Argus) — Japanese renewable energy developer Erex has started building two 50MW biomass-fired power plants in Vietnam, the company said on 10 October. Erex started construction on 4 October in the Yen Bai and Tuyen Quang provinces of northern Vietnam. Each plant will have 50MW of generation capacity and burn around 500,000 t/yr of wood residue secured in northern Vietnam. Both plants are scheduled to come on line in mid-2027. Both projects are backed by Japan's subsidy scheme that supports potential projects that could contribute to its Joint Crediting Mechanism (JCM) to cut greenhouse gas emissions. The construction cost of each plant is estimated at $100mn-120mn, Erex said. Erex plans to start operations at the 20MW Hau Giang plant in December, which is its first biomass-fired power plant in Vietnam. The company aims to build up to 19 biomass-fired power plants and 20 wood pellet factories in Vietnam by mid-2030s. The company also runs biomass projects in Cambodia , aiming to construct up to five power plants. The company's profits from Vietnam and Cambodia are expected to grow rapidly and account for more than 70pc of its whole profits around 2030, the company said. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

US inflation slows to 2.4pc in Sep

10/10/24

News

10/10/24

US inflation slows to 2.4pc in Sep

Houston, 10 October (Argus) — US inflation slowed slightly less than expected in September, but still came in at the lowest annual rate since February 2021, in the first major inflation report since the Federal Reserve started cutting interest rates last month. The headline consumer price index (CPI) eased to an annual 2.4pc in September, down from 2.5pc in August, according to the Labor Department. The decline was less than the 2.3pc forecast in a survey of economists by Trading Economics. Excluding volatile food and energy, so-called core inflation rose to a 3.3pc annual pace, higher than forecasts for core inflation to match the prior period's 3.2pc pace. Today's report is the final CPI report ahead of the next Federal Reserve policy decision on 7 November and it follows a much stronger than expected employment report for September, which together could prompt the Fed to move more cautiously. Still, CPI has come down sharply from its peak of 9.1pc in mid-2022 and, despite aggressive Fed tightening, hiring has continued at a healthy rate and the overall economic expansion remains on track, partly thanks to falling energy prices. The energy index contracted by an annual 6.8pc pace in September after contracting 4pc through August. The food index rose by an annual 2.3pc following a 2.1pc gain in the prior period. Transportation services rose by 8.5pc. Within energy, the gasoline index fell by 15.3pc after a 10.3pc decline in the prior period. Energy services rose by 3.4pc after a 3.1pc gain. Natural gas services rose by 2pc. Shelter rose by 4.9pc after a 5.2pc gain. Transportation services rose by 8.5pc following a 7.9pc gain. Auto insurance was up 16.3pc. On a monthly basis, CPI rose by 0.2pc in September, matching gains in August and July, Labor said. Shelter rose by 0.2pc and food increased by 0.4pc, together accounting for over 75pc of the monthly headline increase, Labor said. The energy index declined by 1.9pc over the month, after falling by 0.8pc in the prior month . By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ecuador appoints new interim energy minister

09/10/24

News

09/10/24

Ecuador appoints new interim energy minister

Quito, 9 October (Argus) — Ecuador's minister of environment Ines Manzano has been appointed interim minister of energy, replacing Antonio Goncalves, the presidency said today. Goncalves had been the country's energy minister for three months. He left his position in the middle of a power-supply crisis in the country that started on 23 September with rolling blackouts amid a harsh dry season that hit hydropower generation. The country is currently scheduling 10-hour blackouts per day. When Goncalves took office in July, crude production averaged 469,413 b/d. It recovered to 477,601 b/d in August but it fell again to 471,061 b/d in September. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more