Japan boosts wood pellet imports in March

Spanish Market: Biomass
26/04/24

Japan's wood pellet imports in March rose from a year earlier, with Indonesian supplies hitting a record high of almost 60,000t.

Japan imported 531,500t of wood pallets in March, up by 47pc from a year earlier, according to preliminary data released by the country's finance ministry on 26 April. This was also higher by 9pc from February.

Imports from Indonesia jumped to 59,353t in March, more than a fivefold increase from 10,796t a year earlier. This significantly exceeded the previous record high of 35,516t in January. But Vietnam remained Japan's top supplier at 247,054t, up by 63pc on the year.

Japan received 102,478t of wood pellets from the US in March, withno cargoes delivered in March 2023.Imports from Malaysia also almost tripled to 22,261t from the previous year's 7,591t.

Higher March imports sent Japan's total imports in the April 2023-March 2024 fiscal year to around 6.1mn t, up by 29pc from a year earlier.

PKS imports

But Japan cut imports of palm kernel shell (PKS) in March, down by 30pc from a year earlier. Imports from Indonesia fell by 23pc to 184,384t, while Malaysian supplies declined by 51pc to 40,462t.

The start-up of a new biomass-fired power plant in March helped increase Japan's total imports. Japanese renewable power developer Renova in March started commercial operations at its 75MW Ishinomaki Hibarino biomass-fired power plant in northeast Japan's Miyagi prefecture, which burns an undisclosed volume of wood pellets and PKS.

But domestic utility Jera's 1,070MW Taketoyo No 5 coal and biomass co-fired power unit in Aichi prefecture has been off line since a fire in January. Fellow utility Tokyo Gas' 51.5MW Fushiki Manyofuto biomass-fired plant in Toyama prefecture also continued to face technical issues after a 7.6 magnitude earthquake hit the Hokuriku area in January.

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.

15/10/24

Japan's 2MW Susono biomass plant starts construction

Tokyo, 15 October (Argus) — Japan's 2MW Susono biomass-fired power plant in Shizuoka prefecture has started construction today, with the aim to begin commercial operations in October 2025. The Susono plant will burn 27,000 t/yr of wood chips secured in Shizuoka to generate around 15 GWh/yr of electricity. Operating company Susono Biomass Power is held 50pc by Japanese utility Chubu Electric Power, 40pc by energy company ML Power, which is a subsidiary of financing firm Mizuho Leasing, and 10pc by renewable energy developer Prospec AZ. Those companies plan to build three other biomass-fired power plants in Gunma, Nagano, and Niigata prefectures. Each plant is expected to come on line in November 2025, April 2026, and May 2027. The three 2MW plants will burn 27,000-29,000 t/yr of locally gathered wood chips to generate around 15 GWh/yr. Chubu has invested in a number of biomass-fired power plants, including the 112MW Tahara in Aichi prefecture , which is currently under construction and aims to start commercial operations in September 2025. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Erex starts building two biomass plants in Vietnam

11/10/24

Erex starts building two biomass plants in Vietnam

Tokyo, 11 October (Argus) — Japanese renewable energy developer Erex has started building two 50MW biomass-fired power plants in Vietnam, the company said on 10 October. Erex started construction on 4 October in the Yen Bai and Tuyen Quang provinces of northern Vietnam. Each plant will have 50MW of generation capacity and burn around 500,000 t/yr of wood residue secured in northern Vietnam. Both plants are scheduled to come on line in mid-2027. Both projects are backed by Japan's subsidy scheme that supports potential projects that could contribute to its Joint Crediting Mechanism (JCM) to cut greenhouse gas emissions. The construction cost of each plant is estimated at $100mn-120mn, Erex said. Erex plans to start operations at the 20MW Hau Giang plant in December, which is its first biomass-fired power plant in Vietnam. The company aims to build up to 19 biomass-fired power plants and 20 wood pellet factories in Vietnam by mid-2030s. The company also runs biomass projects in Cambodia , aiming to construct up to five power plants. The company's profits from Vietnam and Cambodia are expected to grow rapidly and account for more than 70pc of its whole profits around 2030, the company said. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU commission pushes for 12-month deforestation delay

02/10/24

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.

Enviva files restructuring plan

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.

Japan's Taketoyo biomass co-fired plant delayed further

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.

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