Japan’s Erex to build biomass power plant in Cambodia

Market: Biomass, Electricity
08/05/25

Japanese renewable energy developer Erex aims to start constructing a 50MW biomass-fired power plant in Cambodia in mid-2025, the company told Argus today.

The plant in southern Cambodia's Kampong Speu province will be the first biomass-fired power project for Erex in the country. It is scheduled to start commercial operations in the 2027-28 fiscal year, and will burn domestic wood chips and agricultural residues to generate around 350 GWh/yr.

The Cambodian government will purchase all the electricity generated at the plant for 25 years after its start-up. Erex plans to build up to five biomass-fired power plants which will burn domestic biomass fuels, as well as several wood pellet factories in Cambodia. The government expects these projects to raise the country's energy security.

Erex on 23 April began commercial operations at the 20MW Hau Giang biomass-fired power plant in southern Vietnam, its first biomass-fired power project in the country.

Erex aims to construct up to 18 biomass-fired power plants in Vietnam, following Hau Giang. The company has already started constructing two 50MW plants in northern Vietnam.

Erex also started wood pellet production at its first factory in Vietnam in March, with a capacity of 150,000 t/yr. The company plans to build up to 20 wood pellet factories in the country.

Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and could account for more than half of its total profits by around 2030, according to the company, and the projects would also contribute to both countries' decarbonisation efforts.

By Takeshi Maeda

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

16/05/25

UK offshore wind sector needs stability: Industry

London, 16 May (Argus) — The UK's offshore wind sector requires urgent government action to restore investor confidence and meet 2030 decarbonisation goals, industry leaders warned at the All-Energy conference in Glasgow on 14 May. Speaking at the panel Offshore Wind 2024: A Year in Turmoil, experts called for policy stability, streamlined consenting and stronger supply chains to unlock the sector's potential. Chair of industry body Global Wind Energy Council (GWEC) Jonathan Cole criticised the government's proposed locational marginal pricing reforms, arguing they introduce complexity and deter long-term investment. "We're not building coffee shops and bookstores, we're building infrastructure that will sit in one location for generations," he said. Cole warned that a 1pc rise in capital costs could erase £20bn in projected benefits, urging policymakers to prioritise stability over "speculative" market changes. ScottishPower Renewables' chief executive, Charlie Jordan, echoed the need for clarity, highlighting the £75bn investment in UK grid upgrades, particularly in Scotland, as critical for jobs and future-proofing the energy system. He said the ongoing review of electricity market arrangements (Rema) risks undermining grid investment and called for practical measures like general taxation to protect consumers from rising transmission costs. Both panellists stressed the need to accelerate consenting processes to maintain project timelines. They also emphasised strengthening the UK's offshore wind supply chain to compete with nations like South Korea and France. "Without swift action on ports, manufacturing and grid connections, we'll lose opportunities," Jordan said, pointing to Scotland's ScotWind seabed leasing programme and Celtic Sea offshore wind projects. Scotland has 3GW of offshore wind capacity across seven wind farms, including the 1.1GW Seagreen and 30MW Hywind Scotland. Projects under construction, such as the 450MW Neart na Gaoithe and 882MW Moray West, bring the nation's pipeline to 10.2GW expected by 2030, aligning with the Scottish government's 11GW target. The ScotWind seabed leasing round saw 25GW of leasing options agreements awarded in January 2022, with projects like the 2.1GW Berwick Bank, 1.1GW Inch Cape and 560MW Green Volt in planning. But recent setbacks have raised concerns about deliverability. The cancellation of Danish utility Orsted's 2.4GW Hornsea 4 project in May, despite a 15-year contracts for difference (CfD) at £83/MWh, underscores the sector's challenges. Orsted cited rising costs and "execution risks" from installing 180 turbines, highlighting economic unviability under current conditions. Transparency in energy pricing was deemed essential for public support. Jordan said prohibitive costs, driven by taxes and seabed leasing fees, make UK industrial users 70pc less competitive than their European counterparts. Cole added that clear communication is vital as discussions about market reforms and potential EU alignment intensify. With the upcoming seventh round of the CfD scheme and ongoing government consultations, the panel urged decisive action to stabilise the sector. "This is the time for long-term vision, not academic experiments," Cole said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Austrian PV additions fall 100MW on year in 1Q

15/05/25

News

15/05/25

Austrian PV additions fall 100MW on year in 1Q

London, 15 May (Argus) — Austrian solar photovoltaic (PV) capacity additions fell by around 100MW on the year in the first quarter of 2025, solar association PV Austria told Argus , a decrease of around 20pc. Newly installed PV capacity in January-March stood at 399MW, PV Austria said, compared with 497MW added in the first quarter of last year, according to data from grid regulator E-control. But late reports from Austria's distribution system operators may still cause a slight uptick in capacity addition numbers for the last quarter, PV Austria said. The association largely attributed the fall in solar additions to uncertainty around government policies, which "compromised" planning security and "jeopardised" investments into renewable energy, it told Argus . And it cited the "abrupt" end of the VAT exemption for small PV systems as well as the extension and tightening of the energy crisis contribution as further reasons for the decline. PV Austria called on the government to pass the electricity industry act (ElWG) and the renewable energy expansion acceleration act (EABG) as soon as possible. The government in February pledged to pass the ElWG in the summer of this year. Austria had just under 8.3GW of solar capacity installed as of the start of January, the latest data from transmission system operator APG show. Solar output more than doubled on the year in 2024 and APG has several times highlighted the challenges posed by increased PV capacity for demand forecasting and grid stability during times of solar peaks, when excess power must either be transported abroad or to storage power plants and can also lead to curtailments at wind and hydropower units. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

UK establishes public energy company

15/05/25

News

15/05/25

UK establishes public energy company

London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Grids key to boosting SE Asia’s renewable power: Ember

15/05/25

News

15/05/25

Grids key to boosting SE Asia’s renewable power: Ember

Singapore, 15 May (Argus) — Up to 30GW of solar and wind power could be unlocked along planned grid routes in southeast Asia, which would help meet growing power demand in the region, according to a report released today by think-tank Ember. The Asean group of nations is still heavily reliant on fossil fuels, but solar and wind power are expected to constitute 23pc of the energy mix by 2030, up from 4pc currently, according to Ember. Asean as a region targets a 51GW increase in solar, and a 109GW increase in wind, hydro, geothermal and bioenergy combined by 2040. Electricity demand is rising in the region, because of economic growth as well as greater demand from data centres and transport electrification. Expanding and modernising the region's grid infrastructure would help to allow for the development of more clean energy, improve system flexibility and support regional power sharing. Up to 24GW of potential solar power and 5.6GW of wind power are situated in Indonesia's Riau islands and Sumatra, Malaysia's Sarawak, Cambodia and Brunei, where there are existing and planned grid projects. But the electricity generated from these projects needs transmission lines to be transported to demand centres. Indonesia, Vietnam, the Philippines and Thailand collectively plan to add 45,078km of transmission lines between 2023-30. But this is slightly less than half of IEA's projections that indicate southeast Asia needs to expand transmission lines by 100,000km between 2021-30 to meet its clean energy targets. Regional variance There is significant disparity between Asean countries in their clean energy potential, with some having abundant wind and solar capacity, and others having hydropower and geothermal resources. These resources also tend to be subject to seasonal variations. Regional grid interconnection is hence "key to using these resources in combination, boosting renewables use and economic growth" states the report. The Asean Power Grid has seen some progress through the Lao PDR-Thailand-Malaysia-Singapore (LTMS-PIP) project and the Brunei Darussalam, Indonesia, Malaysia and the Philippines Power Integration Project (BIMP-PIP). But grid development plans still vary significantly across the region. Only Cambodia, Malaysia and Singapore have signed the UN's Global Energy Storage and Grids Pledge, which aims to deploy 1,500GW of energy storage and 25mn km of grid infrastructure globally by 2030. Additionally, investment required to expand electricity grids, including regional interconnections, could reach $22bn/yr by 2035, the IEA said. Asean's clean energy future hence depends on cross-border data sharing, addressing infrastructure requirements, momentum in policymaking for regional co-operation, and aligning investments with future energy demand, says Ember. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

IDB to finance R1.4bn for Sao Paulo's EV fleet

14/05/25

News

14/05/25

IDB to finance R1.4bn for Sao Paulo's EV fleet

Sao Paulo, 14 May (Argus) — The Interamerican Development Bank (IDB) will provide R1.4bn ($250mn) in financing for Brazil's Sao Paulo city to further expand its electric vehicle (EV) bus fleet. Sao Paulo has 527 electric buses and forecasts more 2,200 clean fuel buses by 2028, the government said. The city has a total fleet of 12,000 buses. In April, the Bank of China approved $100mn for Sao Paulo to buy more electric buses. But the city did not disclose how many buses it would buy. Sao Paulo also received R2.55bn from Brazil's development bank Bndes to buy 1,387 electric buses in December. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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