The Significance of Converting Power Plants from Coal-Fired Thermal to Biomass

Dear All

Company Name: erex Co., Ltd.

Representative: Hitoshi Honna

Representative Director and President

(Stock Code: 9517, TSE 1)

Contact: Takanobu Yasunaga

Executive Director

(TEL: +81-3-3542-4336)

The Significance of Converting Power Plants from Coal-Fired Thermal to Biomass
– erex’s Biomass Fuel and Power Generation Businesses –

 

In developing biomass fuels overseas as renewable energy sources, it is required to consider the development based on the GHG impact of procurement, processing, and transportation, the appropriateness of land use, and the existence of competition with food. erex is pleased to announce the current status of its biomass businesses, specifically “development of biomass fuels” and “co-firing and single-fuel firing of biomass fuels in inefficient coal-fired thermal power plants” as follows.

 

Note

1. Development of Biomass Fuels

erex develops new sorghum as a biomass fuel in Vietnam. In Vietnam, new sorghum is characterized by its rapid absorption of CO2 due to its early growth of about three months, and its absorption and saving amounts are several times higher than those of other biomass fuels. In addition, because it can be cultivated in poor land through quality improvement, there is no competition with food, and it does not involve logging. Therefore, the new sorghum business creates local employment, and the Vietnamese authorities say that it will contribute to the development of the local economy. In addition, erex procures wood pellets and PKS, which are existing fuels, from legally verified sources through certification, etc., and uses them as sustainable biomass fuels. erex believes that the biomass fuels that it handles can play a role in the realization of de-carbonized societies not only in Japan but also in Southeast Asian countries.

 

2. Co-firing and Single-Fuel Firing of Biomass Fuels in Inefficient Coal-Fired Thermal Power Plants

By co-firing or single-fuel firing of inexpensive biomass fuels developed by erex in inefficient coal-fired thermal power plants, erex believes that it is possible to avoid the “fade-out of inefficient coal” and to shift to sustainable biomass fuels by pursuing economic rationality in terms of costs and simultaneously by reducing CO2 emissions and reducing the risk of technological development.

As a base power source of renewable energy, erex believes that converting inefficient coal-fired power plants, which have the power adjustment capabilities, to biofuels will enable them to continue to operate after 2030, which will contribute to the stable supply of power while promoting the de-carbonization of Japan. In addition, since the continued operation of thermal power plants in Japan has a significant impact on the local economy and employment, erex believes that this initiative will also lead to contribution to the local community.

erex will continue to aim for the realization of de-carbonized societies both in Japan and overseas by developing its biomass businesses based on the deregulation of electric power.