Japan’s Hibikinada biomass plant to shut for conversion

  • : Biomass, Electricity
  • 24/04/08

Japanese housing and energy company Daiwa House Industry will close this week the 112MW biomass and coal co-fired generation unit at its Hibikinada power complex to fully convert it to biomass.

Daiwa plans to shut the unit at Kitakyushu city in south Japan's Fukuoka prefecture on 11 April, according to a notice by Japan Electric Power Exchange (Jepx). The unit plans to convert fully to biomass by April 2026, with the unit off line from this week for preparations to only burn biomass as a generation fuel, Daiwa said.

Japan's power producers plan to cut 189MW of thermal capacity during the week to 14 April, with the closure of 6.7GW outstripping the addition of 6.6GW, according to Argus' survey based on a notice by Jepx. The difference incorporates the net drop in oil-fired capacity of 700MW and the net increase in coal-fired capacity of 104MW and gas-fired capacity of 407MW.

Mild spring weather has finally arrived in many areas of the country that has capped electricity demand. Japan's total power demand averaged 88GW during 1-7 April, down by 6pc from the previous week, show data from nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators.


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24/05/27

Japan's Erex to develop biomass projects in Cambodia

Japan's Erex to develop biomass projects in Cambodia

Tokyo, 27 May (Argus) — Japanese renewable power producer Erex is planning to launch biomass generation projects in Cambodia, aiming to build up to five 50MW plants by 2030. Erex has been running a feasibility study in Cambodia since last November and will complete it by this summer. The company signed an initial agreement with Cambodia's Ministry of Mines and Energy to co-operate in energy development, including biomass fuel and generation, in December 2023. This includes power plants and wood pellet factories. Those power plants will burn domestically produced biomass fuels including wood residue and chips, but the firm did not disclose the volumes involved and the timelines. The Cambodian government expects the projects to raise the country's energy self-sufficiency. Erex is also accelerating its biomass business in Vietnam. The company started building a 20MW power plant in Hau Giang province in September 2022, which is expected to be completed by the end of this year. The company is planning 18 more biomass power stations in the country, including the 50MW Yen Bai plant, for which the government issuedan investment registration certificate this month. The company invested in wood pellet production plants in Vietnam, with the output mainly for exports to countries including Japan. Erex is also promoting biomass use in the country by helping domestic utilities convert their coal-fired power plants into biomass-fired or co-fired units using wood residue and chips. Profits from projects in Vietnam and Cambodia are expected to grow rapidly and account for at least half of its whole profits by the end of 2020s, the company said. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indonesian coal producer Indika eyes biomass market


24/05/27
24/05/27

Indonesian coal producer Indika eyes biomass market

Singapore, 27 May (Argus) — Indonesian coal producer Indika Energy is venturing into biomass, as it diversifies into more environmentally-friendly businesses and reduces its reliance on conventional fuel revenues. Indika, which produced 30.1mn t of coal in 2023 through its subsidiary Kideco, last year completed construction of a wood pellet factory in Paser, east Kalimantan, the company said in its 2023 sustainability report. The biomass business is part of its subsidiary Indika Nature that is preparing its first batch of production. It is aiming to produce 150,000 t/yr wood pellets by 2025. These will have an average calorific value of 4,200-4,750 kcal/kg that is suitable for biomass-based power plants or for co-firing in a thermal power plant. It is planning to export the pellets to Japan. [Japan imported 531,500t of wood pellets in March](https://direct.argusmedia.com/newsandanalysis/article/2562604), 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 rise to 59,353t in March, more than a fivefold increase from 10,796t a year earlier. This exceeded the previous record high of 35,516t in January. Indika will become the first biomass company in Indonesia with a comprehensive value chain, it added. Indika Nature cultivates a commercial forest in east Kalimantan that provides biomass for carbon-neutral energy generation. It is aiming to cultivate this year 7,500 hectares of calliandra, a woody plant that is a source of biomass. The group's commodity trading arm also started trading of palm kernel shells, a by-product of palm oil production that is used as a fuel in biomass power plants. Its customers included trading firms in Indonesia, Japan and Portugal. Indika Energy has set a target for 50pc of its revenues to come from its non-coal business by 2025, as a part of its long-term goal to entirely transition away from coal and expand its presence in renewables and the non-energy space. It has been reducing its presence in coal-related businesses, while becoming more involved in electric mobility, gold mining and digital technologies. It decided to sell a 100pc stake last year in its Mutu coal mining unit to domestic firm Petrindo Jaya Kreasi. Indika earned almost 87pc of its $3.02bn revenues in 2023 from coal compared with nearly 89pc in 2022. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US poised to back New Jersey offshore wind farms


24/05/23
24/05/23

US poised to back New Jersey offshore wind farms

Houston, 23 May (Argus) — US regulators could soon approve two offshore wind projects near New Jersey, but with stipulations that would slightly reduce the number of turbines installed in the Atlantic Ocean. The US Bureau of Ocean Energy Management (BOEM) favors a design for the Atlantic Shores South system that would result in up to 195 turbines, as many as 10 offshore substations and eight transmission cables to ferry electricity ashore to New Jersey, the agency said today in its final environmental impact statement for the project. Atlantic Shores South comprises two separate projects, Atlantic Shores 1 and Atlantic Shores 2, which are 50:50 partnerships between Shell and EDF Renewables. The pair's overall capacity is tentatively set at 2,837MW, with the first phase targeting 1,510MW and a size for the second to be determined. Atlantic Shores 1 has a contract to deliver up to 6.18mn offshore renewable energy certificates each year to New Jersey, with first power expected in 2027. The state selected the project through its second offshore wind solicitation, with the 20-year contract scheduled to begin in 2028. The developers had proposed installing up to 200 turbines, but BOEM decided to favor a modified plan, adopting alternatives put forward by the companies in the name of mitigating impacts on local habitats while limiting turbine height and their proximity to the shore to reduce the project's "visual impacts," a point of contention among New Jersey residents who fear damage to tourism in oceanside communities. The BOEM-endorsed design would have mostly "minor" to "moderate" effects on the surrounding environment, with exceptions including consequences for North Atlantic right whales, commercial and for-hire fisheries and local scenery, which could be "major." The areas potentially hit hardest by the projects would be open to "major" consequences regardless of the project design, according to BOEM's analysis. The preference is not BOEM's final ruling, but it does herald the path the agency is likely to take. Regulators will publish the review in a "coming" edition of the Federal Register, starting a mandatory 30-day waiting period before BOEM can publish its final decision on the project. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Origin to keep Eraring coal plant on line


24/05/23
24/05/23

Australia’s Origin to keep Eraring coal plant on line

Perth, 23 May (Argus) — Australian utility firm Origin Energy and the New South Wales (NSW) state's Labor government have agreed to keep the nation's largest single power facility open for at least two more years. The deal involves Origin shelving plans to close the 2,880MW Eraring coal-fired power plant near the NSW city of Newcastle next year, and operating the generator until 19 August 2027 and potentially until April 2029. A generator engagement project agreement has been signed, under which Origin will receive compensation covering the cost of running the 40-year old plant, while aiming for the plant to generate at least 6TWh for the two additional fiscal years it will run. Eraring produced 12.15TWh last year, Origin's 2023 annual report showed. The firm must decide by 31 March in 2025 and 2026 whether it will enter the underwriting arrangement for the following financial year. If Origin profits from its Eraring plant during these years it will pay NSW 20pc of the proceeds, capped at A$40mn/yr ($26.5mn/yr), but no compensation will be paid after 30 June 2027. Origin can claim no more than 80pc of Eraring's financial losses each year from NSW and the compensation is to be capped at A$225mn each year, if it does opt in. Origin spent A$147mn for generation maintenance and sustaining capital on Eraring in 2023, with A$69mn owing to costs associated with the facility's ash dam. Eraring provides around 20pc of NSW's delivered electricity and was scheduled to be replaced by the 2,200MW pumped hydro scheme known as Snowy 2.0 — which has experienced significant delays and will not be on line until 2029 — and the 750MW Kurri Kurri gas-fired power station also being developed by federal government-owned Snowy Hydro, which is to be commissioned later this year. Coal-fired power generation The viability of coal-fired generators has been declining for some time as Australia's renewable power generation grows to nearly 40pc of the total grid capacity. Widespread rooftop solar is driving electricity prices into negative territory during daylight hours and disrupting the profitability of large-scale generators. Origin has committed to a 460MW battery energy storage system (BESS) at the site of Eraring, which it says will provide two hours of firming capacity to the national electricity market. Australia's Clean Energy Council said the announcement must be backed by measures to integrate new renewable generation and storage into the NSW grid with "clear signals and support" to rapidly transition to renewables. Planning issues and rising costs have stymied the federal and state governments' plans to increase Australia's dependence on large-scale wind, solar, pumped hydro and BESS projects to replace coal generators. Canberra is aiming for an 82pc renewables share for Australia's electricity production by 2030. Coal-fired generation increased on the year for January-March because of a warmer-than-average summer and increased availability. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK general election set for 4 July


24/05/22
24/05/22

UK general election set for 4 July

London, 22 May (Argus) — A general election will take place in the UK on 4 July, prime minister Rishi Sunak said today. The announcement coincides with official data showing that UK inflation has fallen to its lowest level in nearly three years. Labour, the country's main opposition party led by Keir Starmer, has held a substantial lead in polls in recent months and performed well in local elections earlier this month. It won nearly 200 seats on local councils, as well as several regional mayoral contests, while the ruling Conservative Party lost almost 500 council seats. The Conservatives have been in power since 2010 and have fielded five prime ministers during that time. The two main parties are likely to release more detailed manifestos once the election campaign begins, but their current respective energy policies have many similarities. Both back a windfall tax on oil and gas producers and support nuclear power. They both also support offshore wind and solar power, although Labour has incrementally more ambitious targets for those renewables and has plans for more onshore wind. Labour also wants a zero-carbon power grid by 2030 , while the Conservatives are aiming for that in 2035. The Conservatives have rolled back some climate policy since Sunak became prime minister, while Labour in February backed down on its pledge to spend £28bn/yr ($35.6bn/yr) on the country's energy transition, if it wins the election. For a general election to take place in the UK, the prime minister must request permission from the British monarch — King Charles III — who then dissolves parliament. A general election must take place at least once every five years in the UK, although a prime minister can call one at any point. The UK's last general election was held on 12 December 2019 and Boris Johnson was elected prime minister. There have since then been two prime ministers — Liz Truss in September-October 2022 — and Sunak. Truss was selected by Conservative Party members and Sunak became prime minister in October 2022 after the only other candidate withdrew from the leadership contest. The Conservatives hold 344 seats out of 650 in the House of Commons, the UK's lower house of parliament. But 105 members of parliament have said that they will not run at the next election, 66 of whom are Conservatives. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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