Latest market news

Japan’s Iitate biomass plant to start up in mid-July

  • Market: Biomass
  • 01/07/24

A 7.5MW biomass plant in Japan's Fukushima prefecture's Iitate village has completed construction and will start commercial operations in mid-July, the operating company said today.

The biomass unit will burn a total of 95,000 t/yr of unused wood and wood bark gathered from Fukushima prefecture, including several areas hit by the nuclear disaster in 2011. Those biomass fuels may contain radioactive materials, so the unit is equipped with double filters and will continuously monitor radioactive materials in the exhaust gas.

The company will sell the electricity under Japan's feed-in-tariff scheme for 20 years and consider continuing commercial operations after that. The total project expense is $62mn and received $34mn from the Japanese government's subsidy scheme to build power plants in Fukushima, in efforts to revitalise the prefecture. The company started building the Iitate plant in August 2022.

The power unit is operated by joint venture Iitate Bio Partners. Japanese utility Tokyo Electric Power owns 40pc of the company, while construction company Kumagai-Gumi, developer Kobelco Eco-Solution and Tokyo Power Technology each have a 20pc stake. Tokyo Power Technology is a subsidiary of Tokyo Electric Power, and the Iitate plant is located around 40km from Tokyo Electric Power's Fukushima Daiichi nuclear plant.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
02/10/24

EU commission pushes for 12-month deforestation delay

EU commission pushes for 12-month deforestation delay

Brussels, 2 October (Argus) — The European Commission has proposed an extra 12 months' "phasing-in time" to implement the bloc's EU deforestation regulation (EUDR). The commission also published the outlines of the EUDR methodology to classify countries as low, standard or high-risk. It said a large majority of countries worldwide will be classified as "low risk". The commission said that three months ahead of the intended implementation at the end of this year, "several global partners" have repeatedly expressed concerns about preparedness and that European stakeholder preparation is "also uneven". It added that the delay in "no way puts into question the objectives or the substance of the law". German agriculture minister Cem Ozdemir last month called for the commission to "urgently" postpone the EUDR's implementation by six months . The commission can "create all the necessary conditions on its own" for a delay, without renegotiating the EUDR, he said. Parliament's largest centre-right EPP group has also pushed to delay the regulation. Officials published "additional" guidance documents and a "stronger" international co-operation framework for global stakeholders, EU states and third countries. The change requires approval from EU states and European Parliament to make the EUDR applicable from 30 December 2025 for large companies. The date would be pushed back to 30 June 2026 for small firms. A group of major firms such as Ferrero, Mars Wrigley, Mondelez International and Nestle called for no reopening of the EUDR's "substance". The group, joined by several campaign organisations including Fairtrade International, said renegotiating aspects of the EUDR would only increase uncertainty and jeopardise the investments made for application. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Enviva files restructuring plan


03/09/24
News
03/09/24

Enviva files restructuring plan

London, 3 September (Argus) — US wood pellet producer Enviva published a restructuring plan on 30 August, along with a disclosure statement under its chapter 11 bankruptcy case. Holders of claims and interests entitled to vote on the plan can do so until 6 November. A bankruptcy court hearing to approve the disclosure statement and a backstop motion is scheduled for 4 October. The deadline to vote on the restructuring plan is 16:00 ET on 6 November. Only holders of claims in class 5 and 6 and interests in class 10 are entitled to vote ( see tables ). The disclosure statement is intended to provide voters with information to understand the restructuring plan and its effects on creditors and equity holders. The backstop commitment agreement was executed by debtors and "equity commitment parties" on 30 August to facilitate the rights offering ( see key terms, below ). Other stakeholders that initially supported the restructuring — which hold over 82pc of the senior secured credit facility claims, 98pc of 2026 notes claims, 92pc of the Bond plant green bond claims, and 78pc of the Epes plant green bond claims — have agreed to support the plan, subject to terms and conditions of the two restructuring support agreements signed with debtors. Enviva filed a voluntary petition for chapter 11 bankruptcy on 12 March. The plan's key terms • The sale of "reorganised Enviva Inc. interests pursuant to a rights offering" for $250mn of equity rights plus the principal amount of any debtor-in-possession (DIP) financing facility's tranche A claims that choose not to participate in the DIP tranche A equity participation. Enviva secured the $500mn DIP facility on filing for chapter 11 bankruptcy. The $250mn tranche A could be converted into reorganised equity, while the $250mn tranche B could only be paid in cash at maturity. Holders of tranche A claims can subscribe for the purchase of reorganised Enviva interests on the date the restructuring plan becomes effective, which is expected to allow Enviva to repay the DIP and senior secured credit facility claims in cash. • Entry into a $1bn "first lien senior secured exit facility"; • The DIP tranche A equity participation; • Repayment of the DIP tranche A claims; • Repayment of senior secured credit facility claims in cash; • Distribution of reorganised Enviva's interests and rights to "participate in the rights offering to the Bond [plant project's] general unsecured claims"; • Distribution of cash that in total equals either $13mn or $18mn — depending on whether certain conditions are met — to holders of non-Bond general unsecured claims; and • An overbid process "to solicit bids for a value-maximising alternative transaction". The latter might take the form of (a) one or more sales or dispositions of Enviva's assets, or (b) one or more reorganisation transactions involving the debtors and/or the company assets. "Alternative transactions" need to meet certain requirements set out in the final DIP agreement approved by the court. The debtors looked at other restructuring options, but have concluded the plan submitted will maximise recoveries for stakeholders, Enviva said. By Marta Imarisio and Erisa Senerdem Enviva's restructuring plan voting classes Voting class Name of class under plan Class 5 Bond general unsecured claims Class 6 Non-Bond general unsecured claims Class 10 Existing equity interests - Enviva's court docket Enviva's classification of claims and interests Class Claim/Interest Status Plan voting rights Approximate % recovery 1 Other priority claims Unimpaired No, presumed to accept 100.0 2 Other secured claims Unimpaired No, presumed to accept 100.0 3 Senior secured credit facility claims Unimpaired No, presumed to accept 100.0 4 NMTC claims Unimpaired No, presumed to accept 100.0 5 Bond general unsecured claims Impaired Entitled to vote 7.7-7.9 6 Non-Bond general unsecured claims Impaired Entitled to vote Pro rata share of an amount of Allowed Non-Bond General Unsecured Claims 7 Intercompany claims Unimpaired/Impaired Not entitled to vote N/A 8 Section 510(b) claims Impaired Not entitled to vote, deemed to reject 0.0 9 Intercompany interests Unimpaired/Impaired Not entitled to vote N/A 10 Existing equity interests Impaired Entitled to vote N/A - Enviva's court docket Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japan's Taketoyo biomass co-fired plant delayed further


03/09/24
News
03/09/24

Japan's Taketoyo biomass co-fired plant delayed further

Tokyo, 3 September (Argus) — The 1.1GW coal and biomass co-fired Taketoyo No.5 generation unit, managed by Japan's largest power producer Jera, faces further delays in coming back on line after a fire in January. Jera today announced safety measures to prevent the same kind of incident that led to the fire but failed to comment on when the unit is expected to restart operations. It has been off line following the fire, linked to exploding dust from wood pellets, according to the company's investigation. The company aims to resume coal and wood pellets co-firing "as soon as possible", although it has yet to start repairs. Jera also plans to resume burning wood pellets imported from the US and Vietnam. The company new safety measures include slowing down the speed of wood pellet conveyors to reduce friction, partially installing air pressure conveying facilities dedicated to wood pellets and equipping explosion suppressor systems for injecting fire extinguishing agents. Slowing down the wood pellet conveyors can affect the co-firing rate with coal and biomass, although the electricity output will not change, the company said. The unit started commercial operations in August 2022 and burned 17pc of wood pellets with coal. The impact of the closure of the unit because of the incident is estimated to cost more than ¥10bn ($68.5mn) for the 2024-25 fiscal year ending 31 March, with around half of it being replacement fuel costs that are mainly LNG purchases. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

India's Sail starts trialling biochar for steelmaking


29/08/24
News
29/08/24

India's Sail starts trialling biochar for steelmaking

Mumbai, 29 August (Argus) — India's state-controlled Steel Authority of India (Sail) has started using biochar for steelmaking at its plant in Odisha state to bring down carbon emissions. Sail carried out a trial injection of biochar in blast furnace (BF) 1 of its Rourkela Steel Plant on 24 August, the steelmaker said. Biochar — produced by thermally decomposing biomass derived from plants and animals — can partially replace pulverised coal injection in BFs, Sail said. The company did not provide any specific timelines. Steelmakers in India are largely reliant on traditional BF technology, which uses coal as a reducing agent to produce iron and releases vast amounts of carbon in the process. Coal-based BFs account for 73pc of India's total operating iron-making capacity, according to data from Global Energy Monitor. There has also been a global push towards finding alternatives to fossil fuels in steelmaking, as countries commit to achieving net zero emissions. In recent days, at least four Japanese steelmakers have tested the use of biocarbon — widely known as biochar — as a replacement for fossil fuels in their electric arc furnaces. In July, Tata Steel also tested the use of biomass as a feedstock at its ferro-chrome unit in east India's Odisha state. Sail's Rourkela plant has a crude steel capacity of 4.2mn t/yr and produces hot-rolled and coil-rolled steel as well as some long products. The company's total crude steel production fell by 7pc to 4.68mn t in April-June, compared with the previous quarter. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japan’s wood pellet imports hit record high in July


29/08/24
News
29/08/24

Japan’s wood pellet imports hit record high in July

Tokyo, 29 August (Argus) — Japan's biomass imports rose in July on the year and on the month, with wood pellet imports hitting a record high. Japan imported 673,000t of wood pellets in July, up by 17pc on the year and by 27pc on the month, according to data released by the country's finance ministry. This was the largest amount on record. Vietnam was Japan's top supplier last month at 369,000t, higher by 45pc from a year earlier and by 60pc by June, which also marked a record high for shipments from the country. The second biggest supplier was Canada at 177,000t. The country's palm kernel shell (PKS) imports were 505,000t in July, higher by 3pc on the year and by 6pc on the month. Indonesia remained the largest supplier at 383,000t, followed by Malaysia at 118,000t. The 75MW Yatsushiro plant in Kumamoto prefecture started commercial operations in mid-June. The 50MW Ozu in Ehime prefecture was conducting test runs before becoming on line at the beginning of August. But the 52MW Ishikari-shinko plant in Hokkaido prefecture halted operations, after an explosion in mid-July. It has been unclear when its generation will be able to resume. By Takeshi Maeda Japan's imports by key sourcing countries 1,000t Wood Pellet Jul-24 Jun-24 Jul-23 m-o-m ± % y-o-y ± % Canada 176.7 120.5 181.4 46.7 -2.6 Thailand 0.0 8.0 0.0 -100.0 - Indonesia 0.4 31.3 10.9 -98.6 -96.0 Vietnam 368.6 230.0 253.4 60.3 45.5 Malaysia 21.1 58.1 9.0 -63.7 134.1 US 106.3 80.3 118.5 32.4 -10.3 Total 673.4 528.2 573.3 27.5 17.4 PKS Indonesia 383.1 321.4 379.3 19.2 1.0 Malaysia 118.1 142.0 108.9 -16.9 8.4 Sri Lanka 3.1 2.4 2.2 29.5 38.8 Vietnam 0.5 0.4 0.4 41.4 42.4 Thailand 0.1 11.4 0.1 -99.0 33.1 Others 0.5 0.6 0.2 -2.8 131.2 Total 505.4 478.1 491.2 5.7 2.9 Source: Finance Ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more