GIA LAI — Japan’s Idemitsu Kosan Co., Ltd. has begun commercial operations at its black pellet production plant in Gia Lai Province (formerly Bình Định), the first of its kind in Việt Nam and one of the largest in the world, which will support decarbonisation.

Operated by Idemitsu Green Energy Vietnam, a wholly owned subsidiary of Idemitsu, it has an annual production capacity of 120,000 tonnes of BP, a biomass-based fuel designed as a carbon-neutral alternative to coal.

Idemitsu Green Energy Pellet™ (IGEP) will mainly be supplied to Japanese customers to support their decarbonisation goals.

IGEP is made from biomass materials such as wood that undergo thermal processing.

While it emits CO₂ during combustion, the wood used as raw material absorbs CO₂ during its growth process, achieving an overall carbon-neutral balance.

Idemitsu has been developing the technology since 2020, when it launched a small-scale BP demonstration plant in Việt Nam.

During the pilot phase, IGEP was tested by about 20 companies in Japan, confirming its effectiveness and ease of use as a substitute for coal.

Compared with other biomass fuels, IGEP offers similar handling and combustion characteristics to coal, allowing users to transition smoothly without major modifications to existing facilities.

As part of its “Vision for 2030: Your Reliable Partner for a Brighter Future,” Idemitsu aims to supply three million tonnes of IGEP a year globally.

It said it remains committed to ensuring stable energy supply while supporting global decarbonization efforts. — VNS