Inauguration of Idemitsu Green Energy Vietnam Co., Ltd.

On July 28, 2023, in Binh Dinh – Idemitsu Green Energy Vietnam Co., Ltd. (Japan) officially inaugurated the first black pellet production plant in Vietnam, with an annual production capacity of 120,000 tons.

(Photo: The wood pellet production plant operated by Idemitsu Green Energy Vietnam Co., Ltd. (IGEV) has a capacity of 120,000 tons)

Officially commenced construction at the end of July 2022 at Hoai Tan Industrial Complex, Hoai Nhon Town (Binh Dinh Province), after a year of project implementation, the wood pellet production plant operated by Idemitsu Green Energy Vietnam Co., Ltd. (IGEV) under Idemitsu Kosan Co.,Ltd. (Idemitsu Kosan) as the investor has officially started operations.

This is a large-scale commercial black pellet production plant utilizing heating technology, with an annual production capacity of 120,000 tons of Idemitsu Green Energy Pellets™ (IGEP), which are exported to the Japanese market.

Mr. Atsuhiko Hirano – Vice President of Idemitsu Kosan shared at the plant inauguration event: “We are very pleased to commence the IGEV plant, which will be the first renewable energy project that Idemitsu Kosan operates independently and also the first black pellet production plant in Vietnam. The startup of this plant is a significant first step for Idemitsu Kosan towards achieving a production capacity of 3 million tons by 2030, not only from plants in Vietnam but also from other countries in the Pacific region. With IGEP pellets, we will contribute to the goal of carbon neutrality and believe that IGEP is a practical and effective solution to replace coal or other fossil fuels to reduce CO2 emissions.”

In Japan, coal is used in various industries such as electric power, pulp and paper production, the chemical industry, and the food industry, to support the daily lives of the people. Idemitsu Kosan is striving to implement this project with the aim of meeting the carbon reduction needs of coal users in Japan and thereby contributing to the supply of sustainable energy and materials.

Characteristics of Idemitsu Green Energy Pellets:

1. Carbon-neutral fuel
   Biomass fuel made from plants emits CO2 when burned, but it is recognized as carbon-neutral fuel because plants absorb CO2 during their growth process. Idemitsu Green Energy Pellets can be co-fired with coal up to a maximum of 35% in combustion trials. Additionally, this coal alternative fuel also emits nearly zero CO2. We are also considering the possibility of increasing the co-firing ratio and aiming to use Idemitsu Green Energy Pellets exclusively as a mono-fuel combustion.
2. Utilization of existing infrastructure
   Due to partial carbonization, black pellets have more calories than conventional wood pellets (white pellets) and have the same “powder form” as coal before being fed into boilers. Therefore, there is no need to upgrade existing coal-fired boiler infrastructure. Furthermore, black pellets have higher water resistance compared to conventional wood pellets (white pellets), so existing outdoor coal storage facilities can also be used for storage.