Grand opening ceremony for a black pellet production plant with an annual capacity of 120,000 tons

Idemitsu Green Energy Vietnam Limited Company, a subsidiary of Idemitsu Kosan Limited Company in Japan, held a Grand opening ceremony for the wood processing and solid biofuel production plant at Hoai Tan industrial cluster in Hoai Nhon town, Binh Dinh province on June 28.

This wood processing and solid biofuel production plant can produce 120,000 tons of black pellets and process 36,000 cubic meters of wood every year. The plant was constructed on an area of ​​8 hectares, with a total investment capital of nearly 900 billion VND.

Additionally, this production plant is the first large-scale Japanese black pellet production plant in Vietnam. The plant will help Idemitsu Kosan Limited Company progress towards its goal of constructing a black pellet supply system with a 3 million-ton annual capacity by 2030.

According to Mr. Shunichi Kito, Director, Chairman and CEO of Idemitsu Kosan Limited Company, black pellets, which are high-calorie solid biomass fuels made from semi-carbonated wood pellets, have seen relatively widespread application. This product is often made from acacia wood. Idemitsu Vietnam Green Energy Limited Company will be responsible for the purchase of raw materials. In addition, the company is attempting to establish a raw material purchasing system to meet the plant's production needs.

According to Mr. Shunichi Kito, coal is primarily used to generate electricity, produce pulp and paper, create chemicals and foods, and support the daily needs of people in Japan. Idemitsu Kosan Limited Company operates with the goal of reducing carbon emissions from Japanese coal consumers, which will contribute to the supply of sustainable energy and materials.

“With our 40-year of experience in the coal business, we aim to build an integrated biomass fuel supply chain that includes raw material procurement, production, sales and shipping. On the other hand, we will strengthen the trading, production and distribution of black pellets in order to promote the use of combustion fuel in combination with coal”, shared Mr. Shunichi Kito.

According to Mr. Shunichi Kito, biomass fuels made from plants emit CO2 when they are burned. However, they are considered carbon-neutral fuels because these plants absorb CO2 during their growth. In co-firing tests, black pellets produced by Idemitsu Vietnam Green Energy Limited Company are burned in combination with coal at a maximum level of 35%. Additionally, this alternative fuel emits unnoticeable amounts of CO2.

“We are looking at the possibility of increasing the fuel combination ratio and using solely black pellets as fuel. Being partially carbonized, black pellets have high calorie contents compared to regular wood or white pellets. They remain in powder form similar to coal before being put into the boiler. In addition, black pellets have higher water resistance compared to regular wood pellets, so they can be preserved in outdoors coal storage" emphasized Mr. Shunichi Kito.