New Zealand's Genesis Energy signs wood pellet deal

Spanish Market: Biomass, Coal
14/03/25

New Zealand utility Genesis Energy has signed an initial agreement with biomass developer Carbona to study the viability of commercial wood pellet supply to the Huntly Power Station, supporting efforts to transition it from coal-fired power to wood-fired.

Carbona is also building a 180,000 t/yr torrefied wood pellet plant in central North Island, it announced on 14 March. The company plans to sell the pellets it produces at the site to major utilities in New Zealand and abroad, beginning in 2028.

Genesis-operated Huntly is New Zealand's largest power station, supplying the country's grid with 1,200MW, and currently runs on gas-fired and coal-fired generators. But Genesis has been exploring opportunities to substitute coal with biomass at Huntly over recent years.

Genesis signed a non-binding pellet purchase agreement with Australian biomass producer Foresta last month. The utility at that time said that it would need 300,000 t/yr of torrefied wood pellets by 2028 to achieve its coal reduction goals.

Carbona's deal with Genesis also comes just days after the Ministry of Business, Innovation, and Employment released data showing that coal and gas-fired electricity generation across New Zealand collapsed in the October-December 2024 quarter, dropping by 42pc on the year.

By Avinash Govind

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13/03/25

Malaysia’s PKS exports fall in 2024, wood pellets rise

Singapore, 13 March (Argus) — Malaysia's total PKS exports stood at 1.27mn t in 2024, down from 1.33mn t in 2023 because of lower demand from Japan and Thailand as well as heavy rain that affected crude palm oil (CPO) output and PKS availability. Malaysia exported 118,000t of PKS in December, down by 32pc from a year earlier, and 20pc lower than 148,000t in the previous month, according to GTT customs data. This is because of lower demand from Thailand, with Japanese demand levels rising slightly on the month in December. But Japanese demand dropped on the year in 2024, because of outages at several power plants following fire incidents, with longer maintenance periods capping PKS consumption in early 2024. But demand picked up after August 2024, and this was reflected in prices. Argus assessed prices for PKS fob Malaysia compliant with Japan's feed-in-tariff (FiT) at $94.63/t on 24 December, up from $83.92/t on 28 August. Argus last assessed the price at $95/t on 5 March this year. The country shipped 117,000t of PKS to Japan in December, down by 7.5pc from 126,000t a year earlier and higher by 10pc from 107,000t in November. Japan was the top export destination for PKS, accounting for 99pc of Malaysia's total exports in December. Shipments to Thailand stood at 829t in December, down by 98pc from 47,200t a year earlier, and 63pc lower from November. Wood pellets Total wood pellet exports from Malaysia were at 1.13mn t in 2024, rising by 31pc from 2023. Malaysia exported 143,000t of wood pellets in December 2024, 28pc higher from 111,000t a year earlier but lower by 10pc from 159,000t in November 2024, according to GTT customs data. The increase in shipments comes as top wood pellet-consuming countries like South Korea and Japan look to diversify their sources, especially as prices of pellets from key supplier Vietnam have continued to increase. Argus assessed the fob Vietnam to South Korea market at $131.63/t on 5 March from $122.19/t on 4 December, with the fob Vietnam to Japan market also climbing to $144/t from $134.83/t over the same period. Japan accounted for 39pc of the country's wood pellet exports in December. Malaysian wood pellet shipments to Japan stood at 56,000t in December, almost tripling from 19,800t a year earlier, but 39pc lower than 91,700t in November. Malaysian shipments of wood pellets to South Korea stood at 26,400t in December, more than doubling on the year but down by 31pc on the month. Shipments to South Korea accounted for 19pc of Malaysia's total wood pellet exports in December. There was a significant volume of wood pellets shipped to the Netherlands in December, with one cargo of 60,000t. This shipment made up 42pc of Malaysia's pellet exports in December. By Joshua Sim Malaysia's biomass exports in December 2024 t Quantity on month (%) on year (%) PKS Japan 117,367 10.2 -7.5 Thailand 829 -62.8 -98.2 Total 118,196 -20.4 -32.1 Wood pellets Netherlands 60,000 na -23.9 Japan 56,067 -38.8 182.8 South Korea 26,440 -31.4 133.8 Total 142,682 -10.5 28.3 Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lower Rio Tinto Al output cuts New Zealand power demand

13/03/25

Lower Rio Tinto Al output cuts New Zealand power demand

Sydney, 13 March (Argus) — New Zealand's industrial electricity demand fell on the year in October-December 2024, after Rio Tinto cut production at its Tiwai Point aluminium smelter in the previous quarter. The country's industrial electricity demand was down by 9pc compared with a year earlier, data from the Ministry of Business, Innovation, and Employment show ( see table ). Rio Tinto cut production at Tiwai Point in late-July 2024, after New Zealand utility Meridian Energy requested that it reduce its energy use by 205 MW. Many of the plant's potlines remained off line until late-September 2024, when Rio Tinto began restarting production at a reduced level. The Tiwai Point Aluminium Smelter is New Zealand's largest industrial energy user, consuming 572MW of power, often accounting for 12-13pc of national electricity demand, according to New Zealand's Electricity Authority. But it only accounted for about 10pc of total demand in October-December because of its lower production level. Rio Tinto's decreased power use and the country's rising geothermal generation in October-December pushed New Zealand's coal- and gas-fired generation to their lowest levels since late-2022. Utilities produced 2.1PJ from coal- and gas-fired generation, down by 73pc on the quarter and by 42pc on the year ( see table ). Coal- and gas-fired plants accounted for just 6pc of total generation in the fourth quarter of 2024, down from 19pc in July-September and 10pc a year earlier. Meanwhile, New Zealand's renewable power generation grew in importance over October-December, even as the government continued taking steps to promote coal- and gas-fired generation. The share of renewable electricity rose to 94.3pc, the highest level since December 2022 and the fourth highest on record. The New Zealand government is eager to promote oil, gas and petroleum generation, resources minister Shane Jones told Argus in December 2024. New Zealand's government has rolled back a ban on offshore gas exploration and has been fast-tracking coal developments since taking office in 2023. The country's largest utility, Meridian Energy, also warned of a structural gas shortage in late February, calling for new gas exploration. By Avinash Govind New Zealand Energy Quarterly Oct-Dec '24 Jul-Sep '24 Oct-Dec '23 q-o-q ± % y-o-y ± % Electricity Consumption (PJ) Industrial 11.0 10.1 12.1 8.7 -9.0 Total 33.7 38.1 35.2 -11.4 -4.3 Electricity Production (PJ) Coal 0.5 3.2 1.3 -84.9 -64.2 Gas 1.7 4.6 2.4 -63.8 -29.8 Geothermal 7.6 8.5 7.1 -10.9 6.6 Total 37.7 41.5 38.2 -9.3 -1.4 Source: Ministry of Business, Innovation, and Employment (MBIE) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s MGC to fund US biomass-based plastic start-up

13/03/25

Japan’s MGC to fund US biomass-based plastic start-up

Tokyo, 13 March (Argus) — Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical. ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET. US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA. MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future. Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US headline inflation eases in February

12/03/25

US headline inflation eases in February

Houston, 12 March (Argus) — US inflation fell in February for the first time in four months, an unexpected improvement amid mounting uncertainty over the new US administration's tariff, immigration and spending policies. The consumer price index (CPI) slowed to an annual rate of 2.8pc in February, down from 3pc in January, the Labor Department reported Wednesday. Analysts surveyed by Trading Economics had forecast a 2.9pc rate. Core inflation, which strips out volatile food and energy, rose at a 3.1pc annual rate, down from 3.3pc the prior month and the lowest since April 2021. The deceleration in inflation comes as the Federal Reserve has signaled it is in no hurry to change its policy stance as it weighs the impacts of President Donald Trump's tariffs and other policies, which most economists warn will spur inflation. The Fed is widely expected to hold rates unchanged at its policy meeting next week after pausing in January following three rate cuts in the final months of 2024. The energy index fell by an annual 0.2pc in February from 1pc growth in January. Gasoline fell by 3.1pc. Piped gas rose by 6pc. Food rose by an annual 2.6pc, accelerating from 2.5pc. Eggs surged by an annual 59pc, as avian flu has slashed supply. Shelter rose by 4.2pc, accounting for nearly half of the overall monthly gain in CPI, slowing from 4.4pc in January. Services less energy services rose by 4.1pc, slowing from 4.3pc in January. New vehicles fell by 0.3pc for a second month. Transportation services rose by an annual 6pc, slowing from 8pc in January. Car insurance was up by an annual 11.1pc and airline fares fell by 0.7pc. CPI slowed to a monthly 0.2pc gain in February from 0.5pc in January, which was the most since August 202 3. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil refinery to produce fuel from eucalypt

11/03/25

Brazil refinery to produce fuel from eucalypt

Sao Paulo, 11 March (Argus) — Petrobras-controlled Riograndense refinery successfully conclude tests to produce fuels from eucalyptus biomass in Brazil's southern Rio Grande do Sul state. The refinery used a bio-oil from eucalyptus biomass and converted it in fractions of fuel gas, LPG, components to produce gasoline and marine fuel with renewable content and others. The bio-oil came from industrial company Vallourec's forest unit in southeastern Minas Gerais state. The test reveals the possibility of using wood and other forestry residues as feedstocks for products usually coming from a fossil origin, said Petrobras's technology, engineer and innovation director Renata Baruzzi. Petrobras intends to transform Riograndense refinery into the first oil plant to produce 100pc renewable fuels in the world, according to Petrobras' chief executive Magda Chambriard. The efforts are part of Petrobras' BioRefino program, which will invest almost $1.5bn to generate sustainable fuels as of 2029. Riograndense refinery is also controlled by Brazilian companies Ultra Group and Braskem petrochemical. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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