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Japanese firm to test Chinese wood pellet cargo

  • : Biomass
  • 24/10/18

A Japanese trading house plans to test delivery of an industrial wood pellet cargo from China to Japan in November.

A cargo with 11,000t of wood pellets will be shipped from Shanghai in eastern China to a Japanese end user. The pellets are PEFC-certified and meet Japan's sustainability certification requirements for state-supported schemes for power generators such as the feed-in-tariff (FiT) or feed-in-premium (FiP).

The delivered cargo will cost around $10/t more compared with prices for Vietnamese pellets, and the firm plans to bring in more Chinese cargoes in 2025 should the first cargo be delivered successfully.

Suppliers in China estimate the country has an export capacity of over half a million tonnes of wood pellets, although such potential has yet to materialise. China exported 9,000t of wood pellets in 2023, with shipments to Japan below 1,000t, customs data show.


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24/11/05

Port of Vancouver grinds to halt as picket lines form

Port of Vancouver grinds to halt as picket lines form

Calgary, 5 November (Argus) — Commodity movements at the port of Vancouver have halted as a labour dispute could once against risk billions of dollars of trade at Canada's busiest docks. The International Longshore and Warehouse Union (ILWU) Local 514 began strike activity at 11am ET on 4 November, following through on a 72-hour notice it gave to the BC Maritime Employers Association (BCMEA) on 1 November. The BCMEA subsequently locked out workers hours later that same day, 4 November, which the union says is an overreaction because the union's job action was only limited to an overtime ban for its 730 ship and dock foreman members. Natural resource-rich Canada is dependent on smooth operations at the British Columbia port of Vancouver to reach international markets. The port is a major conduit for many dry and liquid bulk cargoes, including lumber, wood pellets and pulp, grains and agriculture products, caustic soda and sodium chlorate, sugar, coal, potash, sulphur, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and petroleum products. These account for about two-thirds of the movements through the port. Canadians are also reliant on the port for the import of consumer goods and Asian-manufactured automobiles. The two sides have been at odds for 19 months as they negotiate a new collective agreement to replace the one that expired in March 2023. Intervention by the Canada Industrial Relations Board (CIRB), with a hearing in August and September, followed by meetings in October with the Federal Mediation and Conciliation Service (FMCS), failed to culminate in a deal. The BCMEA's latest offer is "demanding huge concessions," according to the ILWU Local 514 president Frank Morena. The BCMEA refutes that, saying it not only matches what the ILWU Longshore workers received last year, but includes more concessions. The offer remains open until withdrawn, the BCMEA said. A 13-day strike by ILWU longshore workers in July 2023 disrupted C$10bn ($7.3bn) worth of goods and commodities, especially those reliant on container ships, before an agreement was met. Grain and cruise operations are not part of the current lockout. The Westshore coal terminal is also expected to continue operations, the Port of Vancouver said on 4 November. The Trans Mountain-operated Westridge Marine Terminal, responsible for crude oil exports on Canada's west coast, should also not be directly affected because its employees are not unionized. In all, the port has 29 terminals. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s 53MW Chokai Minami biomass plant comes on line


24/11/05
24/11/05

Japan’s 53MW Chokai Minami biomass plant comes on line

Tokyo, 5 November (Argus) — A joint venture led by Japanese utility Tohoku Electric Power has started commercial operations at the 53MW Chokai Minami biomass-fired power plant in Japan's Yamagata prefecture. Operations started on 2 November. The plant burns a combined 200,000 t/yr of imported wood pellets and palm kernel shells (PKS) to generate around 330 GWh/yr of electricity, which will be sold under the country's feed in tariff (FiT) scheme, the joint-venture company announced on 5 November. The plant is operated by Chokai Minami Biomass Power, which is 75pc owned by Tohoku Electric Power, 15pc by renewable energy developer Olympia and 10pc by a subsidiary of Japanese gas supplier Shizuoka Gas. Chokai Minami is Tohoku's first biomass-only combustion project. The company has also invested in the 50MW Niigata Higashikou biomass plant, which is planning to start operations in mid-November, later than October as initially scheduled. Tohoku has two other planned biomass projects, the 2MW Yokote and the 2MW Yuzawa plants. These facilities are scheduled to come on line in June 2026 and October 2026 respectively. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan's Hibikinada biomass unit to trial runs in Jan


24/11/01
24/11/01

Japan's Hibikinada biomass unit to trial runs in Jan

Tokyo, 1 November (Argus) — Japan's 112MW Hibikinada biomass plant, which is being converted from coal and biomass co-firing to biomass-only combustion, will trial run in January 2025. The plant in southern Japan's Fukuoka prefecture, which is held by housing and energy company Daiwa House Industry, will conduct test runs to examine if exhaust gas coming from biomass-only operations can meet environmental regulations and verify that the modified boiler can be stably operated. The construction for conversion started in April and nitrogen injection systems for preventing fires have already been installed. Daiwa will resume conversion works in mid-2025 after evaluating results from the first test runs, and complete it by April 2026. It aims to start biomass-only combustion operations around April 2026 to generate 980 GWh/yr of electricity. Of this, 30pc will be sold under Japan's feed in tariff (FiT) scheme while the company is considering other ways to sell the remaining 70pc, including long-term power purchase agreements (PPAs) and electricity capacity auctions. The plant started operations as a coal and biomass co-firing power plant in February 2019, burning 70pc of coal and 30pc of imported wood pellets. Daiwa bought the operating company in January 2023 and announced it will convert the project to biomass-only combustion in April 2023, then halted operations in April 2024 for conversion. It will burn up to around 450,000 t/yr of wood pellets after converting to biomass-only combustion. Daiwa is aiming to develop more than 2,500MW of renewable energy capacity around 2030, including solar, wind, hydro, and biomass-fired power generation. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's LPG market seeks alternatives: Correction


24/10/29
24/10/29

Brazil's LPG market seeks alternatives: Correction

Corrects national LPG demand in fifth paragraph. Rio de Janeiro, 29 October (Argus) — Brazil's LPG distribution business will change significantly and look toward alternatives such as compressed natural gas (CNG) and biomethane in the near future thanks to a growing number of industry mergers and an expected surge in demand from new federal laws. In March, Copa Energia, Brazil's largest LPG distributor with 25pc the market share, acquired small-scale CNG distributor Companhia de Transporte de Gas (CTG) as part of its strategy to expand distribution of natural gas and biomethane. Copa is looking to acquire at least three other companies, including biomethane producers, to increase margins as biomolecule prices are still higher. Ultragaz — which has 17pc of Brazil's LPG market share — acquired Neogas, another CNG distributor, in 2022 and progressed on to biomethane distribution. Essencis Biometano, a southeastern Sao Paulo state partnership between renewable energy companies MDC and Solvi Essencis Ambiental, will supply 68,000m³/d of biomethane to Ultragaz, and Rio de Janeiro GNR Dois Arcos' biomethane plant will supply 10,000 m³/d to Ultragaz. "This is a rush to capitalize on an opportunity to offer a mix of energy products to the market, hence not only securing one's clients portfolio but also moving ahead of the market and perhaps growing the clientele," one LPG market executive said. The trend of looking into other markets is especially strong in Sao Paulo as well as in southern and central-western states. The federal government's Gas for All social program — expected to deliver one 13kg cylinder/month to 20mn families by the end of 2025 — will also change the LPG market's dynamics by driving demand while including new consumers into the LPG market. Some participants say it will help decrease usage of firewood for cooking, which is still prominent in the countryside and unlikely to be replaced entirely. Delivered cylinders could replace up to 40pc of wood consumption, a consultant told Argus, thus increasing national demand for LPG by 216,000-312,000 metric tonnes (t)/yr, up from about 7.6mn t/yr currently used nationwide. The program is most likely to increase LPG use in rural areas, helping major distributors in those areas increase their market shares even further. By Betina Moura Brazilian LPG market share Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Enviva renegotiates wood pellet contract with Sumitomo


24/10/22
24/10/22

Enviva renegotiates wood pellet contract with Sumitomo

London, 22 October (Argus) — US wood pellet producer Enviva has renegotiated a long-term offtake contract with Japanese trading house Sumitomo, with amendments made to contractual volumes, base pricing and shipping arrangements, it said in a court filing on 21 October. The new deal includes modifications to "purchase option terms related to volume and pricing", Enviva said in the filing, without specifying the direction of the changes. The parties will probably have some flexibility on pricing, as they have agreed on "additional functionality to discuss updating the base price to account for changes in end-user financial condition and production costs", Enviva said. No base price was specified in the court filing, although contracts signed with Japanese counterparties in 2018-19 were typically priced near the $200-205/t cfr Japan range. The original contract signed in January 2019 was for about 400,000 t/yr, for 18-year offtake to supply Sumitomo's biomass plant in Fukushima , with deliveries starting from 2022, but the renegotiated annual volume is thought to have been reduced. The parties have also agreed on the revision of the shipment price, including "specified annual escalations", updates to the bunker fuel adjustment calculation, modification to provisions regarding laytime and demurrage, and updates to certain logistics specifications, including applicable ports and delivery schedule. The renewed contract will take force 14 days after the court filing, barring any objections and pending court authorisation. Enviva rejected two contracts with Sumitomo earlier this year under the ongoing bankruptcy court proceedings, for supplies to the Kaita and Sendai power plants. By Hannah Adler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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