Idemitsu Kosan begins commercial operation of black pellet plant

October 14, 2025 | 12:05

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Idemitsu Green Energy Vietnam Co.,Ltd. (IGEV) has commenced commercial operations of its new plant in Gia Lai to produce black pellets (BP), a type of biomass fuel.

Idemitsu Kosan begins commercial operation of black pellet plant

Idemitsu Green Energy Vietnam, a subsidiary of Idemitsu

The plant is Vietnam's first commercial scale BP production facility, and with an annual production capacity of 120,000 tonnes, ranks among the world's largest. BP produced at this plant, branded as Idemitsu Green Energy Pellet (IGEP), will be supplied as an alternative fuel to coal, mainly to support Japanese coal customers' decarbonisation goals.

BP is a biomass-based energy resource made from materials such as wood that undergo thermal processing. While BP emits carbon during combustion, woods used as raw material absorb carbon through photosynthesis in the growth process, resulting in a net “carbon-neutral” status. IGEP is specifically designed to meet the decarbonisation needs of customers currently using coal.

Since 2020, a small-scale BP demonstration plant in Vietnam has been operated. During this time, trial batches of IGEP have been supplied to approximately 20 companies in Japan, where it has been evaluated as a viable alternative fuel to coal. IGEP is a high-calorie fuel made from torrefied wood pellets. Compared to other biomass fuels, IGEP offers handling properties similar to coal, enabling a smoother transition without requiring major modifications to existing facilities of coal customers.

Through the venture, the Japanese company will contribute to the development of Vietnamese society through job creation and sustainable wood use.

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By Thanh Van

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