Construction of a commercial manufacturing plant for black pellets (product name: "Idemitsu Green Energy Pellets ™") in Vietnam, contributing to CO2 reduction for Japanese coal customer. Expand black pellet supply base to reach annual production of 300,000 tons within 3 years

To construct the new plant, we invested in an existing wood pellet manufacturing company in Vietnam and established a new company. (Company name: “Idemitsu Green Energy Vietnam Limited Company”)
The new plant will be built on the site of an existing wood pellet manufacturing factory, and will mainly use acacia offcuts and sawmill residue as raw materials. Through the new company, we will build an integrated supply chain from raw material procurement to production, sales, and transportation, and as an energy company, we will realize a stable supply of carbon-neutral fuel that ensures sustainability.

【overview】

1.Company name

Idemitsu Green Energy Vietnam Limited Company (90% Idemitsu stake)

2.Location

Vietnam Binh Dinh Province

3.Operation start date (planned)

First half of 2022

4.Production capacity

Annual production: 120,000 tons

5.Materials used

acacia etc.

6.Product name

Idemitsu Green Energy Pellets ™

"Idemitsu Green Energy Pellets" is a high-calorie fuel made by torrefying the commonly used wood pellets. It is possible to mix it with coal and use it as a fuel (mixed combustion) without modifying existing coal combustion equipment. Also, because it is water resistant, existing storage facilities can be used. We have already provided test combustion samples to power plants and factories in a wide range of industries, including electric power, pulp and paper, chemical, and food companies, and have confirmed that it can replace up to 35% of coal. It is also possible to further increase the co-combustion ratio and eventually use only Idemitsu Green Energy Pellets as fuel (single combustion), which has been highly evaluated as an efficient and realistic CO2 emission reduction measure toward carbon neutrality. It has received.

Our goal is to build a supply system for Idemitsu Green Energy Pellets with an annual production capacity of 2 million tons by 2030. As an interim goal by 2030, we aim to build a supply system with annual production of 300,000 tons within three years, and we plan to proceed with production projects in Malaysia and Indonesia following Vietnam.

In our current Medium-term Management Plan, we have set our Vision for 2030 as a "Your Reliable Partner for a Brighter Future" who contributes to solving social issues while providing a stable supply of energy, and we are striving to achieve a carbon-neutral, recycling-oriented society as a "Responsibility to protect the environment and lifestyles" Our goal is to work towards an energy-material transition.
While fulfilling our responsibility to provide a stable supply of energy, we will expand the supply of "Idemitsu Green Energy Pellets" and contribute to the realization of a decarbonized society.

・Some contents were corrected on July 25, 2023