Stable Procurement of High-Quality Biomass Fuel
To ensure stable procurement of biomass fuel, we are working to establish a solid supply chain by strengthening cooperation with local suppliers, trading companies, shipping companies, and other partners. In addition to supplying fuel to our in-house power plants, we also sell fuel to third parties by leveraging our sourcing capabilities cultivated through fuel procurement to date, thus fulfilling the function of "business operator + trading company”.
Demonstration of Presence in the Procurement and Supply of Biomass Fuel
erex Group started operation of Japan's first biomass power plant using PKS(*1) as its main fuel. Currently, PKS and wood pellets(*2) are procured mainly from Southeast Asia.
In order to secure stable fuel procurement, we have established a management subsidiary "erex Singapore PTE. LTD." and are working to diversify our procurement sources, such as working on PKS collection and manufacturing business with local partners in both Malaysia and Indonesia. Furthermore, we are promoting the reinforcement and expansion of biomass fuel supply to third parties by utilizing the knowledge we have accumulated through PKS procurement.
- (*1) PKS (Palm Kernel Shell) is the residue after palm oil is extracted from the seeds of palm (shell part).
- (*2) It is a fixed fuel in the form of a cylinder, made by compressing and solidifying wood waste such as thinned wood and wood shavings at high temperature. It is a type of woody biomass fuel.
Developing Various Biomass Fuels
In addition to PKS and wood pellets, which have been used as biomass fuels, we are developing new biomass fuels.
New sorghum, which is being grown on a trial basis in Vietnam, is characterized by its fast growth and low cost, and its life cycle GHG emissions(*), including cultivation, processing, transportation, and power generation, can be significantly reduced as compared to coal.
It is planned to be used as a fuel for co-firing or single-fuel-firing at non-FIT mega biomass power plants that are planned to be constructed in the future and coal-fired power plants (transition).
The development of new fuels will create stable income and employment for local farmers and contribute to the development of the local economy.
- (*) Life cycle GHG refers to the total amount of greenhouse gas (GHG) emissions from the cultivation of raw materials to final fuel use.
Promoting the Enhancement and Reinforcement of Supply Chain
With the increase in the handling volume of fuel following the start of operations of erex Group's biomass power plants and the growing demand for renewable energy in Japan, it is important to secure a stable supply of high-quality, low-cost fuel. We are working to establish a solid supply chain by strengthening cooperation with local suppliers, trading companies, shipping companies, and other partners. All fuels that we use are FIT-certified biomass fuels. We are also actively working to obtain various certifications covering supply chain management and other aspects for natural environment protection and sustainable use of biomass fuels.