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Japan’s Rengo to quit coal, turn to LNG for paper mills

  • Market: Coal, Natural gas
  • 05/06/23

Japanese packaging firm Rengo is planning to switch its in-house power generation fuel from coal to LNG for paperboard production, and aims to phase out coal consumption at all its local facilities by 2027.

Rengo aims to invest around ¥19bn ($135mn) to shift from coal to LNG at its Kanazu plant in Fukui prefecture by 2026, and at a paper mill operated by its Fukushima-based subsidiary Marusan Paper by 2027. The company declined to disclose the capacity of its power units. But coal consumption at both sites is currently around 125,000 t/yr, it said.

The coal-to-gas fuel switch would reduce emissions of CO2 by 180,000 t/yr compared with the April 2022-March 2023 fiscal year, Rengo told Argus.


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