Japan's Erex to develop biomass projects in Cambodia

Japanese renewable power producer Erex is planning to launch biomass generation projects in Cambodia, aiming to build up to five 50MW plants by 2030.

Erex has been running a feasibility study in Cambodia since last November and will complete it by this summer. The company signed an initial agreement with Cambodia's Ministry of Mines and Energy to co-operate in energy development, including biomass fuel and generation, in December 2023. This includes power plants and wood pellet factories.

Those power plants will burn domestically produced biomass fuels including wood residue and chips, but the firm did not disclose the volumes involved and the timelines. The Cambodian government expects the projects to raise the country's energy self-sufficiency.

Erex is also accelerating its biomass business in Vietnam. The company started building a 20MW power plant in Hau Giang province in September 2022, which is expected to be completed by the end of this year. The company is planning 18 more biomass power stations in the country, including the 50MW Yen Bai plant, for which the government issuedan investment registration certificatethis month.

The company invested in wood pellet production plants in Vietnam, with the output mainly for exports to countries including Japan. Erex is also promoting biomass use in the country by helping domestic utilities convert their coal-fired power plants into biomass-fired or co-fired units using wood residue and chips.

Profits from projects in Vietnam and Cambodia are expected to grow rapidly and account for at least half of its whole profits by the end of 2020s, the company said.

By Takeshi Maeda