27.07.2023 (Argus Media) - Japanese refiner and energy firm Idemitsu has delayed the start-up of its Malaysian biomass production plant, as it announced the end of its partnership with Europe-based renewable energy venture TG2 GmbH in the project.

It is unclear if the two are linked. The plant was to begin producing black pellets from empty fruit bunches (EFB) in March. Idemitsu declined to disclose further details such as the plant's new start-up target or its reason for withdrawing from the partnership.

The company will continue to explore the production of biomass fuel using EFB, and the termination of the partnership will have limited impact. The company also mentioned the possibility of seeking a new partner. But further details including production volumes were undisclosed.

The utilisation of EFB and other agricultural residues, which are extensively discarded in southeast Asia, can significantly contribute to achieving sustainable development goals, said Idemitsu. Approximately 20mn t/yr of EFB is estimated to be disposed from plantations in Malaysia, the company said. Malaysia is the world's second-largest producer of palm oil.

Idemitsu targets to produce 3mn t of black pellets by 2030, sourcing EFB not only from Malaysia but also from Vietnam, Indonesia, Australia and the US. The refiner expects a further increase in biomass demand as Japan aims to generate 36-38pc of its power output from renewable energy sources during the April 2030-March 2031 fiscal year.

By Nanami Oki

https://www.argusmedia.com/en/news/2473324-idemitsus-biomass-project-in-malaysia-faces-delays