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

  • : Biomass, Electricity
  • 24/07/03

Japanese utility Osaka Gas' 5MW Sodegaura biomass power plant, 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 has concluded that the cause of the fire was the combustion of wood pellets stored for more than six months in two silos, the company said on 3 July. The company has established countermeasures, such as a nitrogen injection system that has already been installed near its four silos and can prevent temperature increases.

The other countermeasures also include bringing wood pellets out of silos to lower their temperature every three months or so, although this duration depends on the seasons and other conditions.

The plant was initially supposed to begin commercial operations by the end of February 2023, but its start-up was delayed because of the fire. Osaka Gas struggled to extinguish the fire and only managed to put it out completely in May 2023, four months after the fire started inside the silos. The company finally finished removing all remaining wood pellets from the silos in April this year, as the pellets had absorbed sprayed water and swelled.


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24/07/02

French EdF develops more nuclear supply contracts

French EdF develops more nuclear supply contracts

Paris, 2 July (Argus) — French state-owned utility EdF has signed five letters of intent for long-term nuclear supply contracts for power-intensive industries, EdF executive director Marc Benayoun said at the Europ'Energies conference in Paris today. The five nuclear power supply contracts represent over 10 TWh/yr of consumption and will last for at least 10 years. Payment will be upfront. "We are still far from the [24TWh] maximum that we were aiming for but, in a context of low prices, some actors prefer medium-term contracts", Benayoun said. The utility had signed three letters of intent for nuclear power supply contracts as of April, including one with steel manufacturer Arcellor Mittal and another with green iron consortium GravitHy . French nuclear power supply contracts — or CAPNs — are designed for power-intensive industries, defined by the share of energy expenses in their revenue. French state-owned rail company SNCF consumes an average of 9 TWh/yr of power so does not fall under the power-intensive category, making it ineligible for a CAPN. Discussions on widening the scope of CAPNs have been ongoing with EdF, SNCF operations director Khadidja Haned Bouaddou told Argus . Nuclear supply contracts will partly replace France's Arenh scheme, under which EdF is obliged to sell nuclear power at a fixed price to competitors. The Arenh mechanism is due to expire at the end of next year. The French state reached a deal with EdF at the end of last year that sets a price for nuclear power sales, but the agreement has not yet become law. The prices of the contracts could be renegotiated, French economy minister Bruno Le Maire said recently. France's current parliamentary elections add further uncertainty to the future of the mechanism. EdF has concluded 2,000 contracts for around 40TWh, or 11.7 TWh/yr, of power over 4-5 years, with the power coming not only from its nuclear fleet. This compares with the 20TWh of power that the utility had sold as of the beginning of April . In parallel, the utility is conducting pay-as-clear auctions for delivery in 2028-29, offering 1-5MW. But the auction has not cleared, as prices have decreased and bids received by EdF were below its reserve price, Benayoun said. Power-intensive industries union Uniden president Nicolas de Warren welcomed the initiative of the auctions and said they represent a complementary source of supply. By Tatiana Serova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Italy’s NECP eyes 11pc of power demand from nuclear


24/07/02
24/07/02

Italy’s NECP eyes 11pc of power demand from nuclear

London, 2 July (Argus) — Italy aims to generate at least 11pc of its power demand from nuclear energy by 2050 and could double that amount if necessary as part of efforts to meet its climate goals. In its new national energy and climate plan (NECP) sent to Brussels yesterday, Rome said its "conservative" scenario envisioned installing 8GW of nuclear power capacity using mainly small modular reactors but also fusion plants. Italy could build as much as 16GW of nuclear capacity depending on developments across the energy system, according to the document. The ‘with-nuclear' option would provide savings of around €17bn ($18.3bn) compared with not using it. It would also mean less gas consumption tied to carbon capture and storage (CCS) technology. Italy banned nuclear power in a referendum in 1987 after the Chernobyl disaster, but the current right-wing government of Giorgia Meloni has voiced its support for the technology. Last year it set up the national platform for sustainable nuclear power to map out a timeline for a possible return to nuclear power. In confirmation of targets set last year , Rome said it aimed to install a total of 131GW of renewable energy capacity by 2030, compared to 58GW in 2021, with a view to meeting 63pc of power demand and 39.4pc of total energy consumption. Most of the new capacity will be solar photovoltaic (PV), with 79GW expected to be installed driven by new subsidies and easier permitting. Wind capacity is expected to contribute 28GW, with offshore wind providing just 2.1GW. The plan envisages the development of contracts for difference (CfDs) through auctions for larger plants, as well as a framework to boost power-purchasing agreements (PPAs). Italy's NECP also maps out the development of electricity grids and cross-border interconnections. "The long-term risk is that the tight renewables penetration targets and the CfD mechanism established by the EU to deliver incentives could lead to a negative impact on spot prices, currently driven in Italy by the price of natural gas and carbon allowances," Italian broker Equita said. The current final revision of Italy's NECP comes after a cross-sector and public consultation. It was submitted to the European Commission for approval on 1 July, a day after the deadline required by EU law. By Steven Jewkes and Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Countries draft trade deal to address climate change


24/07/02
24/07/02

Countries draft trade deal to address climate change

London, 2 July (Argus) — Trade ministers for Costa Rica, Iceland, New Zealand and Switzerland have finished negotiations on a trade deal focused on tackling climate change, pollution and loss of biodiversity. The deal — the agreement on climate change, trade and sustainability (ACCTS) — will include an "ambitious" list of environmental goods, with a definition and criteria for updates, the ministers said. The agreement will eliminate tariffs on more than 300 goods, including solar panels, wind turbines, electric vehicles and wood products. It will also outline conservation and sustainability commitments for the production of such items. The agreement will also "contribute a meaningful definition of fossil fuel subsidies to international efforts", the ministers said. On these, there will be "clear prohibitions and a limited set of exceptions to safeguard fundamental policy goals", the ministerial statement added. Pledges to phase out fossil fuel subsidies by various countries, including the G7 and G20 groups, are long-standing. But subsidies for fossil fuels remain widespread and totalled $7 trillion in 2022, according to the IMF. The legal review of the text must be completed before it is signed, ratified and implemented, the ministers said. Their ambition is for the ACCTS to be "a pathfinder agreement that will drive momentum" at the World Trade Organisation, they added. Norway participated in all 15 rounds of negotiations and hailed the "great progress" made. But the country needs more time to assess the agreement, Norwegian foreign minister Espen Barth Eide said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan mulls seeking more gas-fired capacity in auction


24/07/01
24/07/01

Japan mulls seeking more gas-fired capacity in auction

Osaka, 1 July (Argus) — Japan is considering further adding to gas-fired power generation capacity through its long-term zero emissions power capacity auction, given forecasts of rising electricity demand with the rapid adoption of artificial intelligence. A working group under the trade and industry ministry Meti has proposed to look for an additional 4GW of gas-fired capacity over two fiscal years from April 2024-March 2026 via a clean power auction. This came after awarded gas-fired capacity reached 5.76GW in the first auction held in January , with the auction seeking about 6GW over three years. The second auction — which Tokyo plans to hold in January 2025 — could seek 2.24GW, including the remaining 0.24GW in the first auction, for 2024-25 and another 2GW for 2025-26 in a third auction, the working group suggested. It has also proposed to extend the period within which awarded gas-fired projects have to start operations to eight years from the previous six years, given current resource shortages at plant manufacturers. Japan has launched the auction system to spur investment in clean power sources by securing funding in advance to drive the country's decarbonisation towards 2050. This generally targets clean power sources — such as renewables, nuclear, storage battery, biomass, hydrogen and ammonia. But the scheme also applies to new power plants burning regasified LNG as an immediate measure to ensure stable power supplies, subject to a gradual switch from gas to cleaner energy sources. These measures will not necessarily lead to increased demand for LNG, as Japanese import demand for the fuel would further come under pressure from expanded use of renewables and nuclear power. But the power sector will have to secure enough capacity to meet peak demand, especially with power consumption by data centres and semiconductor producers expected to continue to increase. Japan's peak power demand in 2033-34 is forecast at 161GW, up from an estimated 159GW in 2024-25, as the country's digital push will more than offset the impact of falling population and further energy saving efforts, according to the nationwide transmission system operator Organisation for Cross-regional Co-ordination of Transmission Operator. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Iitate biomass plant to start up in mid-July


24/07/01
24/07/01

Japan’s Iitate biomass plant to start up in mid-July

Tokyo, 1 July (Argus) — A 7.5MW biomass plant in Japan's Fukushima prefecture's Iitate village has completed construction and will start commercial operations in mid-July, the operating company said today. The biomass unit will burn a total of 95,000 t/yr of unused wood and wood bark gathered from Fukushima prefecture, including several areas hit by the nuclear disaster in 2011. Those biomass fuels may contain radioactive materials, so the unit is equipped with double filters and will continuously monitor radioactive materials in the exhaust gas. The company will sell the electricity under Japan's feed-in-tariff scheme for 20 years and consider continuing commercial operations after that. The total project expense is $62mn and received $34mn from the Japanese government's subsidy scheme to build power plants in Fukushima, in efforts to revitalise the prefecture. The company started building the Iitate plant in August 2022. The power unit is operated by joint venture Iitate Bio Partners. Japanese utility Tokyo Electric Power owns 40pc of the company, while construction company Kumagai-Gumi, developer Kobelco Eco-Solution and Tokyo Power Technology each have a 20pc stake. Tokyo Power Technology is a subsidiary of Tokyo Electric Power, and the Iitate plant is located around 40km from Tokyo Electric Power's Fukushima Daiichi nuclear plant. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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