Japan closes 2022-23 biomass power tender with no bids

: Biomass
22/11/04

Japan has closed its latest biomass power tender under the country's feed-in-premium (FiP) scheme for the April 2022-March 2023 fiscal year, without any bidders.

Japan's trade and industry ministry (Meti) did not award the fifth biomass power tender, as there were no bidders for the fiscal year. The price ceiling was ¥18/kWh ($121.63/MWh), down by 2.7pc from ¥18.50/kWh in the previous fiscal year. The price cap was announced on 4 November, after being withheld during the tender process, together with the tender results. Meti sought 120MW of capacity, in line with 2021-22.

The past four tenders attracted limited bidders — including the 2021-22 tender which saw two bidders and one 51MW project awarded — and sought a total capacity of 120MW.

Japan has introduced the FiP scheme into the biomass power tender from 2022-23. The country plans to accelerate a switch to the FiP scheme from the FiT to help enhance the market competitiveness of renewable power projects. Meti has applied the FiP scheme to solid biomass power projects which have a capacity of more than 10MW, and liquid biomass power projects with a capacity of more than 50kW.

By Nanami Oki

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26/05/05

Japan stockpiles biomass to avoid higher upstream costs

Singapore, 5 May (Argus) — Several biomass power producers in Japan have been trying to secure more biomass fuels than usual through bilateral negotiations, because of an uncertain market outlook caused by the war in Middle East, to avoid any prolonged impact of rising upstream costs. A Japanese independent power producer (IPP) recently purchased several cargoes of Indonesian palm kernel shells (PKS), amounting to over 200,000t. The prices were in a wide range of $93-102/t fob east coast Sumatra, to be loaded in early May to late December. The reason for such a sizeable volume of procurement is to mitigate the risk of unstable market environment, the company said. The IPP has also secured considerable volumes of wood pellets for the same reason from Malaysia, Indonesia and China, to meet its spot demand for this year. The company has been struggling with the quality of Vietnamese wood pellets. The company purchased fewer spot cargoes of wood pellets than PKS, because most of its wood pellet supplies to biomass-fired power plants in Japan is fulfilled through term contracts. Another power producer sought to procure 80,000-100,000t of wood pellets to meet its spot demand for the whole of this year, with the aim to avoid the market uncertainty caused by the conflict, a market source said. Some consumers are also likely to do the same, mainly in PKS markets, while other companies are following their initial procurement schedule, according to traders. Argus assessed the Indonesian market for PKS that meets Japan's feed in tariff (FiT) requirements at $100.06/t fob east coast Sumatra on 29 April, while the price for Malaysian PKS that complies with Japan's FiT requirements were assessed at $93.71/t fob peninsular Malaysia. The Vietnamese market for pellets that meet Japan's FiT requirements was assessed at $151.40/t fob Vietnam on 29 April. Bulk freight rates from Vietnam to Japan were in a very wide range of $25-45/t, while fuel costs were still volatile because of the war in the Middle East. Rising operating costs Biomass buyers fear that rising upstream costs may persist because of the inflationary impact that the US-Iran war has had on gasoil, bunker fuel and freight costs. Crude palm oil (CPO) prices in Indonesia have also risen due to the war and a weak harvest season. PKS is a by-product of CPO mills and its availability depends on the harvest of palm fresh fruit bunches and the production of CPO. PKS export taxes are based on CPO prices, which have exceeded over $1,000/t in May. This has led to a $10/t export tax for this month . PKS exporters will also need to pay a levy of $5/t, bringing the total cost of tax and levy to $15/t in May, the highest level in almost four years. It was last higher at $16/t in July 2022. Tax and levy rates averaged around $10.60/t in 2025. The nearly $5/t increase means shipments would cost around $44,000-88,000 more on an fob basis for 10,000-20,000t PKS cargoes to Japan. Rising fuel prices in Indonesia and Malaysia, which are major PKS exporting countries, have weighed on operating costs of suppliers, because they must collect PKS from CPO mills by truck. Heavy machinery, barges, and screeners, which are used in the PKS industry, are also exposed to higher fuel prices, and total operating costs are currently higher by 25-35pc than before, market participants said. Meanwhile, some of sellers were willing to compromise on PKS prices to align with buyer expectations to clear stockpiles. Japanese trading firms face rising freight rates stemming from the US-Iran war and are asking sellers to reduce fob prices to help offset that effect, according to market sources. In the Vietnamese wood pellet market , recent offer prices from suppliers for Japanese biomass-fired power plants have been likely $160/t or higher on fob basis. But bidding prices by Japanese buyers seem the same as before the war, around $140-150/t on fob basis, resulting in limited spot liquidity. This has prompted some buyers to source cargoes in other countries. By Takeshi Maeda and Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Forest loss fell in 2025, but from record high: Report

26/04/29

Forest loss fell in 2025, but from record high: Report

London, 29 April (Argus) — Tropical rainforest loss declined in 2025, albeit from a record high rate, according to data from the University of Maryland via non-profit World Resources Institute's (WRI) Global Forest Watch platform. Tropical forest loss fell by 36pc on the year in 2025, although 2024 marked a record high level, with fires the main cause, Global Forest Watch data show. The world lost 4.3mn hectares of tropical primary rainforest in 2025, down from 6.7mn ha in 2024. Although the rate of forest loss declined on the year, it remains 46pc higher than a decade ago, Global Forest watch data show. The drop in tropical forest loss "is encouraging — it shows what decisive government action can achieve. But part of the decline reflects a lull after an extreme fire year. Fires and climate change are feeding off each other… investments in prevention and response will be critical as extreme fire conditions become the norm", Global Forest Watch co-director Elizabeth Goldman said. Global tree cover loss in 2025 stood at 25.5mn ha, down from 30mn ha in 2024. Tree cover loss includes primary and secondary forests, and tree plantations, and does not account for gains in tree cover over the same period. Fires accounted for 42pc of tree cover loss overall in 2025, WRI said. Global Forest Watch focuses on tropical primary forests, as that is where 94pc of deforestation — purposeful, long-term removal of forest — occurs. Mature tropical forests are key natural carbon sinks, as well as crucial for biodiversity and regulating regional and local climate. Countries including Brazil, Colombia, Indonesia and Malaysia "reduced or at least stabilised their forest loss in 2025", owing to "changes in policy, improved law enforcement and voluntary corporate actions to limit forest clearing", Global Forest Watch said. Brazil "substantially reduced" its primary forest loss in 2025, and the country experienced its lowest level of "non-fire" primary forest loss on record, the data show. The decrease in forest loss is linked to President Luiz Inacio Lula da Silva's strengthened environmental policies and enforcement of these. Brazil, which hosted the UN Cop 30 climate summit in November, used the event to put deforestation in the spotlight. It launched a fund, the Tropical Forests Forever Facility , which aims to curb deforestation by paying developing countries $4/ha for preserved tropical forests, and called for proposals for two roadmaps , on ending deforestation and phasing out fossil fuels. The Cop 30 presidency received 177 submissions for the deforestation roadmap, representing over 140 countries, it said this week. Data from non-profit Global Canopy earlier this month suggested that EU regulation is already having an effect on action to tackle deforestation, even though it is yet to come into force. University of Maryland and Global Forest Watch data start in 2001. The organisations' reports use the term forest loss rather than deforestation, as it is not always possible to determine the causes. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Erex eyes carbon credits from Vietnam biomass co-firing

26/04/24

Erex eyes carbon credits from Vietnam biomass co-firing

Tokyo, 24 April (Argus) — Japanese renewable energy developer Erex aims to obtain 92,000 t/yr of CO2 equivalent (CO2e) of carbon credits in 2028 fiscal year from two biomass co-firing projects in Vietnam, the company told Argus . Erex signed an agreement with state-owned company Vietnam National Coal and Mineral Industries (Vinacomin) on coal and biomass co-firing projects on 16 April. The companies plan to start commercial co-firing power generation at Vinacomin's two thermal coal plants, namely the 110MW Na Duong and the 115MW Cao Ngan in northern Vietnam, in the April 2027-March 2028 fiscal year, according to Erex. Erex expects to obtain around half of the total CO2e created by the two plants, which means approximately 45,000 t/yr from Na Duong and 47,000 t/yr from Cao Ngan, in the April 2028-March 2029 fiscal year. The company aims to sell the carbon credits in Japan and other countries, and is currently negotiating with Vietnamese government on project details. Under the joint crediting mechanism (JCM), Japanese developers like Erex are actively negotiating with the Vietnamese government to register biomass co-firing projects specifically to generate credits shared between Japan and Vietnam. Erex has successfully carried out trial combustions of coal and biomass co-firing operations at the two plants in January, burning up to 20pc of wood chips at Na Duong and up to 30pc of wood pellets at Cao Ngan. The company also plans to conduct co-firing test runs at Vinacomin's 670MW Cam Pha thermal coal plant around 2027-28. Erex eventually aims to conduct co-firing operations at six of Vinacomin's thermal coal plants in Vietnam, with a total capacity of 1,585MW, including Na Duong, Cao Ngan and Cam Pha. The co-firing projects also underscore Vietnam's net-zero strategy. The country currently relies on coal to meet around half of its electricity demand, with power consumption increasing by 10 pc/yr. Vietnam has looked to biomass fuels as self-sufficient renewable energy sources. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan's chemicals sector likely to reduce coal demand

26/04/15

Japan's chemicals sector likely to reduce coal demand

Singapore, 15 April (Argus) — A slowdown in petrochemical production in Japan is likely to cut the sector's demand for thermal coal imports. Naphtha-fed crackers in the country have mostly avoided any halt in production caused by supply disruptions, but a few firms have reduced output. Some of the firms that have reduced production include Mitsui Chemicals and Idemitsu. Japan relies on the Middle East for naphtha imports, but supply has been disrupted by the US/Israel-Iran war. But the country is ready to meet domestic requirements for petrochemical products derived from naphtha for at least six months, Japan's ministry for economy, trade and industry (Meti) said. Firms running naphtha-fed crackers are expected to reduce their procurement of thermal coal because of the slowdown and the tight supply of feedstocks, a Japanese trader that supplies thermal coal to chemical firms in the country said. Petrochemical firms usually import bituminous NAR 6,000 kcal/kg coal from Australia for their captive power plants. Thermal coal imports by Japan's petrochemicals sector are estimated to be around 4.5mn t/yr, according to market sources. This is a small percentage, around 3pc, of the country's overall coal imports of 140mn-160mn t/yr, according to customs data from Japan's ministry of finance. A potential cut in coal imports by the sector due to run cuts could be expanded by the shift away from coal by petrochemical companies to using alternative fuels for operations to reduce CO2 emissions. Japanese petrochemical firm Tosoh will start its captive 74MW biomass-fired power plant by end of April the company told Argus on 10 April. The plant is expected to co-fire 50pc of biomass with coal before transitioning to 100pc biomass in 2030. The captive power plant is designed to utilise a combined 360,000-410,000 t/yr of imported wood pellets, construction waste, paper and plastic waste, and coal, according to Tosoh. Tosoh also reduced its coal consumption by shutting down its aging 62MW thermal coal captive power plant, which began operations in 1963. The petrochemical company halted its cracker in central Japan on 4 March for regular maintenance, which was scheduled before the US-Iran war. The cracker was originally planned to restart around 20 April. Tosoh has ensured that it will resume its cracker's operations around the end of April , said the company on 8 April. Power sector demand in Japan But Japanese demand for thermal coal from the power sector is likely to increase in the near term on the back of Meti's temporary removal of restrictions on the operations of inefficient coal-fired power plants in the 2026-27 fiscal year. The removal of restrictions has already led to some enquiries from Japanese utilities. Thermal coal demand from Japan over the past week was focused on increasing annual term supplies. A Japanese utility sought about 2.8mn t of imported thermal coal for a year through a term contract, which likely remains under negotiation. It is seeking another 500,000t of coal in addition to the annual supplies under discussion. Another Japanese utility sought up to two June-July-loading Panamax cargoes of high-CV coal for one of its older, less efficient power plants, a market source said. The utility may have awarded Indonesian high-CV coal for this tender, but details and prices could not be confirmed. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Policy support could unlock biochar use: Industry

26/04/08

Policy support could unlock biochar use: Industry

London, 8 April (Argus) — Increased use of biochar and biocarbon is being held back by economics rather than a lack of demand or technology, and targeted policy support could make projects viable, delegates heard at the International Biomass Conference last week. The industry is not asking for large subsidies, but rather limited, well-targeted government incentives to bridge early adoption, panellists said at the event in Nashville, Tennessee. Demand for biochar-based carbon dioxide removal (CDR) credits exceeds available supply, especially in the US, but finding end users for physical biochar is the hardest part of project development, German firm Carbonfuture's head of business development for Americas, Julie Mansfield, said. "We have buyers coming to us weekly looking for biochar CDR credits in the US, and when those credits come to market, they are gone almost immediately," Mansfield said. Large-scale agriculture represents the "real opportunity" for biochar applications, US project developer Oregon Biochar Solutions' chief operating officer, Karl Strahl, said. But Strahl also recognised real barriers in that sector, saying that it requires "a lot more education and product development". Industrial applications for biochar are seen as more scalable in the near term, with the steel and cement industries able to absorb large volumes. But while the technologies for biochar production are now largely proven, reliability and scalability are still challenging for several suppliers. "Steelmakers want consistency, they want thousands of tonnes, not one successful trial," Canadian firm Char Technologies' chief executive, Andrew White, said. Panellists agreed that revenues from CDR credits alone are insufficient to scale up projects and that they require multiple revenue streams and policy support. "If you are producing high fixed-carbon material, your yield is lower, so you have to find value in the gases as well," White said. By Marta Imarisio Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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