Poland's Energa confirms biomass conversion plan

Market: Biomass
12/02/25

Polish utility Energa will upgrade a 230MW coal-fired unit to co-fire with wood pellets at its 690MW Ostroleka power plant, increasing wood pellet burn in the unit from 2026 onwards.

The upgrade to the 230MW unit — located in northwest Poland — is expected to be completed in the fourth quarter of 2025.

The upgrade at the unit — one of three — will reduce its emissions to meet the 550g of CO2/kWh cap, Energa said today. Meeting this limit will enable the unit to receive capacity market payments awarded to the unit over 2026-31, as noted in the contract signed with the Polish grid operator.

Energa expects to consume 200,000-350,000 t/yr of industrial wood pellets from 2026.

Polish oil company Orlen is a majority shareholder in Energa.

Energa is one of two large Polish utilities upgrading their coal generation units to allow increased wood pellet co-firing from 2026. Government-controlled Enea is upgrading its coal units at its 1.4GW Polaniec power plant to enable them to co-fire with wood pellets to reduce their emissions and meet the 550g of CO2/kWh cap. After this upgrade, the Polaniec plant, which also operates a dedicated biomass-fired 225MW unit, might increase its biomass consumption to as much as 2.5mn t/yr, Enea said last year.

By Tomasz Stepien

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

09/05/25

EU consults on tariffs for €95bn US imports

Brussels, 9 May (Argus) — The European Commission is consulting on an extensive list, worth €95bn ($107bn), of US industrial, agricultural and other imports that could be subject to tariff countermeasures. The long list includes extends from livestock, biofuels, wood pellets to metals, aircraft, tankers and polymers . The consultation runs until midday on 10 June. It is aimed at stakeholders affected by US measures and possible EU rebalancing measures. Also considered for possible countermeasures are restrictions, worth €4.4bn, on EU exports to the US of steel, iron and aluminium scrap, as well as toluidines, alcoholic solutions and enzymes (CN codes 7204, 7602, 292143, 330210 and 350790). The commission linked the possible new measures to US universal tariffs and to Washington's specific tariffs on cars and car parts. The commission said the public consultation is a necessary procedural step. It does not automatically result in countermeasures. The EU also launched a WTO dispute procedure against the US for Washington's universal tariffs, set at 20pc for EU goods and currently paused at 10pc, and at 25pc on all imports of vehicles and car parts. The commission will need approval by EU governments under a simplified legislative procedure. Officials say this will complete a legal act for the countermeasures, making them "ready to use" if talks with the US do not produce a "satisfactory" result. The list of products potentially targeted includes livestock, along with items ranging from spectacles to antiques. The 218-page list includes a range of agricultural and food products including oats, maize, and cereal pellets. Also included are biodiesel and wood pellets (CN codes 38260010, 44013100), as well as paper and cotton products. Aluminium, iron, steel are listed together with a wide range of other goods from gas turbines, ships propellers and blades, aircraft, sea-going tankers and other vessels. Polymers, copolymers, polyesters and other products are not spared (CN codes 39039090 and more). On 10 April, the EU paused its reciprocal tariffs against the US for 90 days, responding to a US pause. The EU notes that €379bn, or 70pc, of the bloc's exports to the US are currently subject to new or paused tariffs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

New Zealand’s Fonterra starts electrode boiler

09/05/25

News

09/05/25

New Zealand’s Fonterra starts electrode boiler

Sydney, 9 May (Argus) — New Zealand dairy co-operative Fonterra has turned on an electrode boiler at its Edendale plant and commissioned two more. This will help reduce CO2 equivalent (CO2e) emissions by 72,800 t/yr from 2027. The co-operative's three boilers will replace coal-fired systems and be powered by renewable energy generated at Edendale, it said on 7 May. Emissions reductions from the plant will account for 4pc of Fonterra's target of a 50.4pc reduction in scope 1 and scope 2 emissions relative to 2018 levels by 2030. The co-operative has committed NZ$70mn ($41.3mn) to build the Edendale boilers, with additional co-funding from New Zealand's Energy Efficiency and Conservation Authority (EECA). Fonterra's on-farm emissions are excluded from New Zealand's emissions trading system , but its coal boilers fall under the scheme. The co-operative has been moving away from coal boilers since 2018, reducing its CO2e emissions by 200,400 t/yr through six conversions. Fonterra has converted coal boilers into wood-fired and electrode boilers in collaboration with EECA. Its 2020 Te Awamutu coal-to-biomass boiler conversion led to a 98.4pc decline in CO2e emissions, from 90,395 t/yr to 1,425 t/yr, according to an EECA study. Fonterra was looking for 80,000-100,000t of Vietnamese wood pellets on a one-year contract starting in mid-2025 as it moves away from fossil fuels to renewables, market participants told Argus in December 2024. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japan’s Erex to build biomass power plant in Cambodia

08/05/25

News

08/05/25

Japan’s Erex to build biomass power plant in Cambodia

Tokyo, 8 May (Argus) — Japanese renewable energy developer Erex aims to start constructing a 50MW biomass-fired power plant in Cambodia in mid-2025, the company told Argus today. The plant in southern Cambodia's Kampong Speu province will be the first biomass-fired power project for Erex in the country. It is scheduled to start commercial operations in the 2027-28 fiscal year, and will burn domestic wood chips and agricultural residues to generate around 350 GWh/yr. The Cambodian government will purchase all the electricity generated at the plant for 25 years after its start-up. Erex plans to build up to five biomass-fired power plants which will burn domestic biomass fuels, as well as several wood pellet factories in Cambodia. The government expects these projects to raise the country's energy security. Erex on 23 April began commercial operations at the 20MW Hau Giang biomass-fired power plant in southern Vietnam, its first biomass-fired power project in the country. Erex aims to construct up to 18 biomass-fired power plants in Vietnam, following Hau Giang. The company has already started constructing two 50MW plants in northern Vietnam. Erex also started wood pellet production at its first factory in Vietnam in March, with a capacity of 150,000 t/yr. The company plans to build up to 20 wood pellet factories in the country. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and could account for more than half of its total profits by around 2030, according to the company, and the projects would also contribute to both countries' decarbonisation efforts. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India’s TSPL starts up torrefied bio-pellet plant

29/04/25

News

29/04/25

India’s TSPL starts up torrefied bio-pellet plant

Singapore, 29 April (Argus) — India's private sector utility Talwandi Sabo Power (TSPL) has set up a torrefied bio-pellet manufacturing facility in the northern state of Punjab, to ensure steady biomass supply to its 1.98GW coal-fired plant. The pellet plant has a capacity of 500 t/d or 182,500 t/yr of torrefied bio-pellets, and use agricultural stubble or residue as feedstock, according to TSPL, a unit of mining conglomerate Vedanta. The Punjab region generates around 15-20mn t/yr of crop stubble, according to TSPL. The plant had already purchased over 800,000t of agricultural stubble, which it will convert to around 640,000t of torrefied bio-pellets. The utility is also targeting to reduce "5pc use of coal daily" by replacing the fuel with torrefied bio-pellets. TSPL also co-fires 450 t/d of torrefied biomass that is purchased from other suppliers in the open market. The utility typically seeks torrefied pellets made from agricultural residue with a minimum of 50pc raw material from stubble, straw, or crop residue from rice paddy. The gross calorific value of pellets procured for its plant usually ranges between GAR 3,400-5,000 kcal/kg. Vedanta's aluminium unit had also used biomass briquettes for power generation. Its alumina refinery in Lanjigarh, Odisha consumes about 20 t/d of biomass briquettes, according to Vedanta. The briquettes are made from agricultural residue sourced from farmers in India. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japan’s Erex starts up biomass power plant in Vietnam

28/04/25

News

28/04/25

Japan’s Erex starts up biomass power plant in Vietnam

Tokyo, 28 April (Argus) — Japan's renewable energy developer Erex has started commercial operations at the 20MW Hau Giang biomass-fired power plant in Vietnam, the company announced on 25 April. The power plant in southern Vietnam's Hau Giang province is Erex's first biomass-fired generation project in the country and burns around 130,000 t/yr of rice husks. The electricity generated by the plant is sold under Vietnam's feed-in tariff (FiT) scheme. Erex aims to build up to 18 biomass-fired power plants in Vietnam following Hau Giang, and five plants in Cambodia. The company has started building two 50MW plants in northern Vietnam. These plants are expected to come on line by mid-2027 and burn wood residues. Erex also plans wood pellet production projects in southeast Asia, with up to 20 factories in Vietnam and several ones in Cambodia. The company's first wood pellet factory in Vietnam with a capacity of 150,000 t/yr has already started commercial production in late March. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and will account for more than half of its whole profits around 2030, according to the company. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. 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