Demand is rising for Napier grass biomass from non-feed-in-tariff (FiT) energy generation, steel and cement industries, and countries including Malaysia and Japan looking to transition from coal-fired generation.
Sustainable energy firm RAW Energy is developing hybrid tropical grass (HTG) pellets in Malaysia to meet such demand. Several stakeholders in Japan are also lobbying for the inclusion of Napier grass as an accepted biomass fuel for the country's FiT-backed power generation, RAW Energy chief executive Ramsay Wilson told Argus.
Can you tell us about your HTG pellet project?
In Bintulu, Sarawak, we have three farms growing HTG — a type of Napier grass —and have completed the Phase 1 build of a scalable pellet factory, and an anchor tenant at Bintulu Port where we have 50,000m² of land and have initially built three silos with plans for three more by end of 2025.
Commissioning operations have been underway for some months with the target for the first shipped cargo set for the second quarter of 2025, but container quantities will be dispatched from end-April 2025 to a range of customers in Malaysia and Japan.
The co-firing sector is the primary target, together with the non-FiT biomass sector in Japan.
How are these pellets different from other forms of biomass or other grass pellets in the market? What are some challenges for HTG harvest, production and storage?
RAW Energy's HTG pellets have a higher thermal energy content than woody biomass and a carbon cycle measured in days instead of decades.
Our pellets have a net calorific value approaching 18.5 GJ/t, with high durability of 99pc, very low fines of 0.1pc, and tamped bulk density of >700 kg/m³, enabling clients to buy less and transport more.
This is a C4 grass and when harvested has moisture levels above 65pc. There are challenges with the logistics and handling of this moisture in the grass together with more than 3m/yr of rainfall on our farms. The grass, when established, is tolerant to wet feet and even short-term flooding.
Are you targeting Japan as a destination market and are you in talks with the trade and industry ministry Meti to get HTG pellets approved as feedstock for FiT-backed generation?
Japan is certainly a target market for non-FiT biomass energy generation, together with co-firing, steel and cement.
The co-firing and decarbonisation of the coal energy system is not only a target in all other Asian markets, but also closer to home in east and west Malaysia where co-firing is starting to decarbonise the current 33mn t of coal used annually for power generation in west Malaysia.
There are many stakeholders in Japan lobbying Meti for the inclusion of Napier grass in the FiT system and we are supporting these efforts.
We are in the midst of a number of contract negotiations.
What other markets in Asia could we expect to be large consumers of HTG pellets — country- and sector-wise?
We see large potential in every Asian country for decarbonisation of the energy sectors and then the steel and cement industries, as well as creating sustainable feedstock for the production of transportation fuels such as marine bunkers, hydrogen and sustainable aviation fuel (SAF).
Australia and New Zealand are actively seeking solutions for a sustainable biomass supply.
Are there any other Asian markets in the pipeline apart from Malaysia to grow HTG plantations?
RAW Energy is in active discussions with partners in Indonesia, Cambodia and the Philippines for the expansion of HTG farms.
Any other comments you would like to add?
We are able to achieve consistent growth rates of 1m/month where we harvest every four months (120 days) when the grass is 4-4.5m in height. We achieve grass yields of 600t/ha each year, pellet yields of 167t/ha annually and reabsorb the CO2 in the supply chain during the next growing cycle of 120 days. We are currently farming on 1,250ha and will be at 2,500ha by end of 2025, and at least 5,000ha by 2026.
