POINTERS: Opportunities for Palm Products in Japan's Renewable Energy Sector

By: Mr. Hiroaki Goto

Mr Hiroaki Goto joined Erex in December and has been doing procurement & sales activity of biomass fuel. From October 2019, he changed its activity base from Japan to Singapore where is more accessible to suppliers in Asia Pacific region. Prior to joining Erex, he worked for a Japanese trade house based in Tokyo, Osaka, Australia and Singapore in the fields of minerals & resources business and business development for over 20 years.

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Following the unfortunate disaster at the Fukushima nuclear power plant in 2011, biomass is increasingly being used as a fuel source in Japanese power plants. Due to the narrow price difference between coal and palm kernel shells (PKS), PKS has become a preferred biomass-based power plant. The import of PKS in Japan has increased tremendously since 2012 after the biomass-generated power become eligible for a feed-in-tariff program (FIT). Indonesia is the biggest PKS supplier for Japan. In this paper, Erex as one of the largest Japanese renewable power suppliers will share quality issues, PKS price outlook and sustainability in PKS in the Japanese market.

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Questions & Answers (5) :

WONG HOOI PENG

2 years ago

Dear Goto-san, In addition to biomass such as PKS and wood pallets, does Japan consume residues from oleochemical plants as fuel?

Hiroaki Goto:
Unfortunately, I have no idea about that , because I am not familiar with oil industry.
2 years ago

JENNY FOO

2 years ago

Mr.Hiroaki, You mentioned in conclusion that Japan is switching back to woody biomass as PKE is n short supply. 1) There are many other sources of woody biomass apart from EFB from palm oil industry . Can you name a few that will compete strongly with EFB? 2) What are the reasons for Japan to prefer these and not EFB? 3) What can palm oil industry do to make EFB Japan's preferred choice ?

Hiroaki Goto:
1) OPT pellet may compete with EFB 2)EFB contains high Chloride and Na + K, these elements damage the boiler. And GHG emission is quite high. 3)To reduce Cl and Na+K, we need to chop finely and wash it before pelletizing
2 years ago

William Yap

2 years ago

Dear Hiroaki Goto-San, Can you explain the role of Biodiesel or PME in the Japanese market ? Which industry are using this product like aviation ?

Hiroaki Goto:
Sorry, I cannot reply anything about that.
2 years ago

Shaheen

2 years ago

Can you please outline briefly the efforts of the Japanese government to promote renewable energy usage? Is it purely based on biomass or include edible oil component like biodiesel?

Hiroaki Goto:
Basically, the government is promoting biomass fuel not competing with food, with less GHG emission.
2 years ago

FENCY

2 years ago

Selamat siang Mr Hiroaki Goto Besides FIT-PKS based biomass, recently POME is gaining its momentum as well What will differentiate the PKS and POME as biomass feedstock Which countries are supplying more for POME / Refined POME feedstock to Japan, if any Terima kasih, salam Sehat selalu - Fency - KLKDumai

Hiroaki Goto:
Sorry, I have no idea about POME
2 years ago