1st Commercial plant construction in Vietnam for black pellet ”Idemitsu Green Energy Pellet™”Contribution for CO2 reduction in Japan and increase supply to 300kt in 3 years

To contribute to the stable energy supply and CO2 reduction at coal boilers, Idemitsu Kosan Co.,Ltd., (“IKC”) will construct their 1st commercial plant to produce black pellets “Idemitsu Green Energy Pellet™”, a carbon neutral energy pellet which could be used to replace coal. Construction site is located in Binh Dinh Province, Vietnam and commercial operation will start at the 1st half of 2022 with the production volume of 120kt/year.

In constructing the new plant, IKC will take a stake in an existing pellet company and construct a new black pellet at the factory site. For feedstocks, IKC will use mainly acacia wood residues and saw dust, and will establish a biomass supply chain from the procurement of raw materials, black pellet production, transportation, and sales. As an energy company, IKC will provide a stable supply of sustainable carbon neutral energy.

【Summary】

1. Company Name
Idemitsu Green Energy Vietnam Limited Company (IKC’s share 90%)
2. Location
Binh Dinh Province, Vietnam
3. Commence of production
1st half, 2022
4. Capacity
120kt/year
5. Raw materials
Acacia etc.
6. Trade name
“Idemitsu Green Energy Pellet™”

“Idemitsu Green Energy Pellet” is a high-calorie fuel produced by torrefaction of wood pellets produced from sustainable sources. It enables customers to co-combust directly with coal without modification of existing equipment, and with its high hydrophobicity, could be stored together with coal in outside stockyards. IKC has provided samples for trial combustion to various customers including electricity, paper and pulp, chemical, and food companies where it achieved up to 35% co-combustion of Idemitsu Green Energy Pellets with coal. IKC subsequently received highly positive feedback from these customers, and these testing clearly demonstrated that Idemitsu Green Energy Pellets are an efficient and realistic measure to reduce CO2 emission and achieve carbon neutral society, and that, in the future, could be used with an even higher co-combustion ratio, aiming to replace coal entirely.

IKC is planning to produce 2 million tons of “Idemitsu Green Energy Pellet” annually by 2030. Later this year, following the commissioning of its 1st plant in Vietnam, IKC will make decisions concerning potential projects in Malaysia and Indonesia. IKC intends to achieve an installed production capacity of 300kt/year production of Idemitsu Green Energy Pellets during the next 3 years.

In Malaysia, beginning in late 2022, together with a European startup company Maatschappij Wilhelmina N.V. (www.wilhna.com) and its parent company TG2 GmbH, IKC aims to produce 120kt/year TG2 Black Pellets™ from Empty Fruit Bunch (EFB, solid waste stream from the palm oil sector). In Malaysia alone, there are approximately 20 million tons/year of EFB available for conversion to TG2 Black Pellets™. Most EFBs are discarded and allowed to decay, emitting significant amounts of methane gas, a potent GHG. To support the achievement of a 46% reduction of GHG emission in Japan by 2030, IKC will put into place an effective approach to supply huge and competitive carbon neutral fuels. IKC and Wilhelmina/TG2 believes that using of EFB and other sustainable SE Asian agricultural residues makes it possible to meet their goals.

In the current Medium-term Management Plan, IKC set the company vision for 2030 for it to become “Your Reliable Partner for Brighter Future”. With this vision, IKC aims to become a company who provides its customers with a stable energy while at the same time tackling global environmental issues. IKC promotes world’s transition to a carbon neutral and circulatory society and takes very seriously its responsibility for preserving the Earth and people’s lives.
IKC will contribute to carbon neutral and energy transition in Japan by expanding the supply of “Idemitsu Green Energy Pellet”, together with continuous energy supply.

- Contact Information -

Public Relations Department Public Relations Section, Idemitsu Kosan Co.,Ltd.

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