Latest Market News

Japan’s Hepco to test torrefied wood pellet co-firing

  • Spanish Market: Biomass
  • 23/08/24

Japanese utility Hokkaido Electric Power (Hepco) plans to carry out a coal and heat-treated wood pellet co-firing test at its Tomato-Tasuma thermal power plant in November.

The company is planning to co-fire up to 10pc of capacity from torrefied wood pellets with coal at the 700MW Tomato-Tasuma No.4 unit in Japan's northernmost Hokkaido prefecture. It will consume several thousands tonnes of torrefied pellets in the first combustion trial for a week with Hepco to consider future co-firing tests. Hepco has yet to announce when it aims to start commercial operations of biomass co-firing and where it will buy the feedstock from.

The utility also plans in the future to co-fire coal and torrefied pellets with ammonia. The co-firing projects will contribute to its decarbonisation plan, with it aiming to achieve net zero carbon dioxide emissions for all its power generation by 2050.

Heat-treated pellets have a higher calorific value compared with typical white wood pellets, with torrefaction one of the technologies it can be produced with. The fuel has better water resistance and grindability than white pellets and shares many characteristics with coal. But companies have in the past raised concerns about the high production costs of heat-treated pellets.

Fellow Japanese utilities Tohoku Electric Power and Hokuriku Electric Power are also considering commercial operations of coal and heat-treated wood pellet co-firing at their thermal power plants.

Japanese energy firm Idemitsu will start torrefied pellet production of 120,000 t/yr in Vietnam in December this year, following several postponements. It is planning to increase its output to 300,000 t/yr within three years with a final target of 3mn t/yr by 2030.


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.

EU affirms 12-month deforestation delay


03/12/24
03/12/24

EU affirms 12-month deforestation delay

Brussels, 3 December (Argus) — Negotiators for the European Parliament and EU member states have provisionally agreed on delaying the implementation of the EU's 2023 deforestation regulation by one year. Fast-track adoption can now take place with a plenary vote expected on 16-19 December and later approval by EU ministers. The EU's council of ministers noted that the provisional agreement does not affect the substance of the existing deforestation rules. The final text, provisionally agreed, does not retain a "no risk" category, put forward by parliament's largest centre-right EPP party. Parliament had narrowly accepted the EPP proposal for the "no risk" category. Backing down on the amendment now allows the EU to proceed to EUDR adoption and publication in the bloc's official journal before the end of the year. Due diligence obligations set by the EU's 2023 deforestation regulation require operators and traders to ensure listed commodities and derived products, sold in or exported to the EU are "deforestation-free". Products include those made from cattle, wood, cocoa, soy, palm oil, coffee and rubber. The European Commission said it aims to finalise the country benchmarking system "as soon as possible but no later than 30 June 2025". And an information system where firms register due diligence statements will enter into operation on 4 December. Parliament's lead negotiator for the deforestation law, Christine Schneider, also pointed to a commitment by the commission to an "impact assessment and further simplification" for low risk countries or regions. "From 2028, countries practising sustainable forest management and showing no deforestation will have the opportunity to be exempted from unnecessary red tape," said Schneider, a member of the German centre-right EPP. The Centre-left S&D group said the system of "no risk" countries would have created an "unfair double standard", dividing EU member states into different risk categories. Negotiators firmly rejected this approach, the group said. "It was clear all along that their half-baked amendment proposals had no chance of success with the council and the commission," said Delara Burkhardt, German S&D negotiator for the deforestation law. Citing reasons of legal certainty, EU states quickly came out in favour of just a one year delay , agreeing with the commission's original proposal. Speaking to parliament on 3 December, the EU's director general for trade Sabine Weyand said robust commitments to halt deforestation in South America, as of 2030, and to ensure adherence to the Paris climate Agreement, are also "essential" elements of the EU's free trade agreement (FTA) with Mercosur countries — Brazil, Argentina, Paraguay, Uruguay, and now Bolivia. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Beccs 'interesting business model' for German biomass


29/11/24
29/11/24

Beccs 'interesting business model' for German biomass

Berlin, 29 November (Argus) — Costs for generating negative CO2 emissions through bioenergy with carbon capture and storage (Beccs) technology in Germany are €103.43/t of CO2 on average for woody biomass, initial results of an unpublished study commissioned by the country's bioenergy association BBE suggests. The average cost of €103.43/t applies to 1t of liquid CO2, which meets food purity standards. This could be the foundation of an interesting future business model for biomass plants, if negative emissions are incorporated into the EU emissions trading system and gain traction as a counterbalance to Germany's residual "hard-to-abate" greenhouse gas emissions, BBE's wood energy consultant, Tim Pettenkofer, said this week. A 20.5MW biomass cogeneration plant could raise its revenues by about 13pc by investing in Beccs, study co-author Lennart Reese of Seeger Engineering suggested. The plant operator would go from annual power revenues of €5.5mn, assuming annual running hours of 8,000 and a power price of €125/MWh, to about €6.2mn, assuming a CO2 price of €120/t. The calculations assume an annuity of 10pc and take into account other factors such as lost earnings from the power volumes used to sequester and liquefy the CO2. Electricity for liquefaction is the biggest cost item of the Beccs process, with Seeger Engineering putting average costs at €28.75/t of CO2. The final study will also look into the costs for Beccs from biogas and bioethanol plants. Beccs costs in the solid biomass segment will be highest, as its tailpipe CO2 intensity is about 10-15pc, the CO2 not being a by-product of a production process and therefore necessitating additional investment in flue gas cooling and sequestration technology. The CO2 intensity for biomethane and bioethanol plants is about 25-45pc and 95pc, respectively. Germany's government estimates the country's residual and hard-to-abate emissions will stand at about 50mn t of CO2 equivalent by 2045. An earlier study by BBE estimated potential for 10.7mn t/yr of CO2 negative emissions from Beccs with existing bioenergy plants in Germany, or 12.9mn t/yr of CO2 based on expected future availability. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Biomass could benefit from Trump’s presidency


29/11/24
29/11/24

Biomass could benefit from Trump’s presidency

London, 29 November (Argus) — The biomass industry expects continued support following the election of Donald Trump as president of the US — primarily through deregulation and expected wider economic benefits. But uncertainties remain, depending on whether the incoming administration will withdraw from the Paris climate accord, remove the Inflation Reduction Act (IRA) or other renewables support, and the success of other related policies. "Our industry has always enjoyed strong bipartisan support, having achieved substantial growth under both Democratic and Republican administrations," US Industrial Wood Pellets Association interim executive director Elizabeth Woodworth told Argus . US wood pellet producers expect no major changes in trade policy under Trump, because of his support for exports. The US does not currently consume any industrial pellets and nearly all of the 10mn t/yr produced are exported to Europe and Asia. Some expect that less red tape on environmental permitting could speed up biomass projects. Trump has pledged to roll back rules on emissions and greenhouse gas limits for power plants, and to repeal regulations limiting coal-fired power generation, among others. These would mimic the relaxation of environmental permitting regulations during Trump's first term. On a wider macroeconomic level, companies expect production costs could fall if Trump's campaign pledges of lower energy costs — by increasing oil and gas production — and lower inflation, materialise. But some analysts suggest these targets could be hard to achieve. On gas, wholesale prices have already dropped, triggering production cuts, and increasing output may not be enough to lower prices further. Trump's proposed growth-oriented economic policies are, at least in the short term, expected to be inflationary and result in higher interest rates and a stronger US dollar. Some campaign pledges to reverse clean energy policies, pull the US out of the Paris Agreement again and cancel unspent funds from the IRA may also affect US biomass industry's future — particularly the development of pellet-fired generation capacity and of bioenergy with carbon capture and storage (Beccs) projects. The IRA, which was signed into law in 2022 and allocated $369bn for climate change and energy-related spending, included support for carbon removals under Beccs projects. Specifically, the IRA's section 45Q provides a tax credit for CO2 sequestration and carbon capture, utilisation and storage deployment. The tax credit value for CO2 captured and permanently sequestered CO2 — geological storage — is $85/US short ton of CO2, while for direct air capture it is $180/st for up to 12 years. In addition, projects for renewable energy and energy storage assets in the US can benefit from investment tax credits. Some analysts argue that repealing the IRA would be met with opposition from industry groups and Republican-led districts benefitting from IRA funds. UK-headquartered utility and wood pellet producer Drax, which has invested in and is developing biomass-fired generation capacity and Beccs projects in the US, expects continued support. "We expect key policies for biomass and Beccs to remain unchanged... We are ready to work with the new administration and congress to deliver all the long-term benefits that biomass, Beccs and carbon removals will bring," a Drax spokesperson told Argus . Drax believes what it "can offer the US and the world in terms of power stability and security, carbon removals, jobs and investment, is valuable under any political party", the spokesperson added. The level of impact on the biomass industry in the short and long term will depend on how boldly and quickly the incoming administration fulfils its campaign pledges. "I am not looking forward to the unpredictable nature of the next administration, but at least it will create some volatility," one market source said. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s wood pellet, PKS imports rise in October


28/11/24
28/11/24

Japan’s wood pellet, PKS imports rise in October

Tokyo, 28 November (Argus) — Japan's wood pellet and palm kernel shells (PKS) imports rose on the year in October, the finance ministry data show. The country imported 692,000t of wood pellets in October, higher by 4pc on the month and by 37pc on the year, the data published on 28 November show. Vietnam remained the biggest supplier in October at 317,000t, followed by the US and Canada at 202,000t and 91,000t, respectively. Japan's PKS imports in October increased by 19pc on the year to 482,000t, but were lower by 8pc on the month. The biggest supplier was Indonesia at 320,000t, followed by Malaysia at 148,000t. Higher imports came against a backdrop of the start of several biomass-fired power plants in Japan. The country brought on line its 75MW Ichihara Yawatafuto plant in Chiba prefecture on 21 September, while the 50MW Hyuga plant in Miyazaki prefecture started commercial operations on 16 October. But Ichihara Yawatafuto stopped operations from 22 October to 5 November because of a fire. The country plans to restart its 75MW Tokushima Tsuda biomass-fired power plant, which has been halted since late September for facility renovations, after the completion of its maintenance in late December. Separately, the 20MW Tosa has been shut for an indefinite period because of aging facilities. By Takeshi Maeda Japan's imports from key countries ('000t) Oct-24 Sep-24 Oct-23 m-o-m ± % y-o-y ± % Wood Pellet Canada 91 105 144 -14 -37 Thailand 11 0 0 - - Indonesia 45 32 0 41 - Vietnam 317 345 178 -8 78 Malaysia 24 35 35 -33 -32 US 202 148 148 37 37 Russia 2 0 0 - - Total 692 665 505 4 37 PKS Indonesia 320 420 337 -24 -5 Malaysia 148 88 64 69 133 Sri Lanka 3 4 3 -20 21 Thailand 10 11 0 -6 - Total 482 523 403 -8 19 Source: Finance ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

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