Latest market news

Japan’s NYK to build biomass-fuelled biomass carrier

  • : Biomass
  • 24/05/14

Japanese shipping company Nippon Yusen Kaisha (NYK Line) and its partners plan to explore developing what it described as the world's first biomass-fuelled biomass carrier.

NYK Line, its subsidiary NYK Bulk and Projects Carriers, Japanese firm Tsuneishi Shipbuilding and UK biomass supplier Drax signed an initial agreement on 13 May to jointly study developing a biomass-fuelled biomass carrier, with an aim to build it by the end of 2029. The vessel will be equipped with a pyrolysis gasifier system, burning wood pellets from storage to generate gas for use in a gas-engine power generator. The electricity will be used to move the ship.

NYK Line expects the vessel to be a Handysize bulker with 20,000-45,000t of cargo capacity, but is unsure of the exact capacity and whether the vessel will be expanded. The companies aim to use wood pellets for now, but may examine if other type of wooden biomass can be consumed in the future.

NYK Line expects to curb greenhouse gas (GHG) emissions by 22pc, compared to conventional marine fuels. It has been a challenge for Handysize bulkers to switch to alternative marine fuels because of their fuel tanks' limited size, so the companies are examining the use of biomass to reduce GHG emission on these ships.

Japanese shipping firms have tried to shift away from conventional marine fuels to achieve decarbonisation, by introducing LNG, LPG, ammonia, batteries and methanol. But a biomass-fuelled ship is unprecedented, said NYK Line. Biomass-fired power generation have been commercialised on land, but companies need further technological development to implement it on vessels.


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.

24/07/23

Idemitsu to start black pellet output in December

Idemitsu to start black pellet output in December

Tokyo, 23 July (Argus) — Japanese energy firm Idemitsu is planning to start black pellet production of 120,000 t/yr in Vietnam in December this year. Idemitsu has already completed construction of the black pellet plant in Vietnam's Binh Dinh province in July 2023 and is now carrying out test operations. The black pellets produced at this plant will be transported to Japan for consumers that include power generation companies operating coal and biomass co-firing. The Vietnamese plant is managed by Idemitsu Green Energy Vietnam, which has become a 100pc subsidiary of Idemitsu in March this year. Idemitsu is planning to increase its black pellet output to 300,000 t/yr within three years after the start-up of the first plant. It final target is 3mn t/yr by 2030 , with an aim to launch projects in Malaysia and Indonesia in addition to Vietnam. The company is also considering empty fruit bunches as feedstock for biomass fuels. Idemitsu has been carrying out studies of coal and biomass co-firing and confirmed that it is possible to burn 35pc of black pellets with coal. The company has provided utilities with samples for test runs. Black pellets also can be used in other sectors, such as steel mills and cement plants. Black pellets, which have a higher calorific value compared with typical white pellet biomass, are produced by the torrefaction of acacia and other feedstock. The advanced fuel has better water resistance and grindability than white pellets and can be used in a similar way as coal. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Erex cuts biomass-fired power output in June


24/07/15
24/07/15

Japan’s Erex cuts biomass-fired power output in June

Tokyo, 15 July (Argus) — Japanese renewable electricity producer Erex reduced its biomass-fired power generation output in June compared with a year earlier, according to the company data. Erex's combined biomass-fired output across the 50MW Saiki, the 75MW Buzen, and the 49MW Nakagusuku power plant in June fell by 8.5pc from a year earlier to 108GWh. The company does not publish output data for its 75MW Ofunato plant, while the 20MW Tosa plant has been under periodic maintenances since March. Erex operates a total of 269MW of biomass capacity in Japan, including Ofunato, burning mainly imported wood pellets and palm kernel shells. The company aims to start coal and biomass co-firing generation at the 149MW Itoigawa plant that has only consumed coal so far. The company plans to start operations at two more biomass plants, the 75MW Sakaide Hayashida in 2025 and the 300MW Niigata Mega Bio around 2029-2030. Erex is also accelerating biomass projects in southeast Asia, aiming to build up to 19 generation plants in Vietnam and five in Cambodia that will burn mainly wood residue and chips, in addition to several wood pellet plants in both countries. By Takeshi Maeda Erex's biomass generation in June 2024 Capacity(MW) Generations(GWh) Start of Operations Tosa 20.0 0.0 Jun-13 Saiki 50.0 31.0 Nov-16 Buzen 75.0 46.0 Jan-20 Nakagusuku 49.0 31.0 Jul-21 Ofunato 75.0 - Jan-20 Total 269.0 108.0 Source: Erex Erex biomass generation (MWh) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Taiwan's Taipower ends Hsinta biomass conversion plan


24/07/10
24/07/10

Taiwan's Taipower ends Hsinta biomass conversion plan

Singapore, 10 July (Argus) — Taiwanese state-owned utility Taipower has terminated its plan to convert a coal-fired generation unit into a dedicated biomass unit at its Hsinta power plant in Kaohsiung city. Taipower had set up a task force in 2022 to facilitate the usage of biomass by converting the fuel used at the Hsinta unit 1 from coal to wood pellets. But Taipower has decided to terminate the plan to follow "government instructions", it said. The four coal-fired units at the Hsinta power plant will remain "at readiness" in line with national security reasons, following government instructions, Taipower said. Taipower's related sectors will continue to evaluate suitable locations for the use of wood pellets, the company added. The plan to convert the 500MW coal-fired unit was in March pushed back to up to 2030 . The coal-fired unit was part of two units decommissioned in late 2023. The plant has a nameplate capacity of 4.3GW. The unit was planned to be converted by 2025, but this was subsequently delayed to 2027. Taiwan has already decided to stop building new coal-fired power plants by 2025 and build a zero-carbon fuel supply system, according to Taiwan's Pathway to Net Zero Emissions in 2050 report. Taiwan currently generates over 40pc of its electricity from coal, with its coal-fired power plants generating 119.9TWh out of a total 281.4TWh in 2023, according to data from Taiwan's energy bureau. The country imported 58.9mn t of thermal coal last year, down by 6.9pc from 2022. Taiwan imported 4.99mn t of thermal coal in May , little changed from a year earlier but up from 4.91mn t in April, preliminary data released by Taiwanese customs last month show. Taiwan bought 22.7mn t of imported thermal coal between January-May, slipping from 23mn t a year earlier. By Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU’s centre-right EPP mulls Green Deal tweaks


24/07/03
24/07/03

EU’s centre-right EPP mulls Green Deal tweaks

Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Fire-hit biomass plant in Japan to start up in 2025


24/07/03
24/07/03

Fire-hit biomass plant in Japan to start up in 2025

Tokyo, 3 July (Argus) — Japan's 75MW Sodegaura biomass-fired power plant, operated by Osaka Gas, will begin commercial operations around April-September 2025, following delays caused by a silo fire in January 2023. The fire at the Sodegaura plant in Chiba prefecture happened during test runs, and Osaka Gas said on 3 July that the cause was the combustion of wood pellets stored for more than six months in two silos. The company has now put in place measures to reduce the risk of fires, including a nitrogen injection system that can prevent temperature increases. Other measures include bringing pellets out of silos to lower their temperature every three months or so, with the exact duration depending on the season and other conditions. The plant was initially supposed to begin commercial operations by the end of February 2023, but start-up was delayed by the fire. Osaka Gas only managed to put the fire out completely in May 2023. The company finished removing all remaining pellets from the silos in April this year — the pellets had absorbed sprayed water and swelled. By Takeshi Maeda 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