Wedoany.com Report-Oct. 15, On October 8, 2025, Idemitsu Kosan Co., Ltd. commenced commercial operations at the world’s first global-scale black pellet production facility in Gia Lai province, Vietnam. This milestone strengthens Vietnam’s position in the Asia-Pacific clean energy supply chain and supports the region’s transition to sustainable energy sources.

The Gia Lai plant, with an annual capacity of 120,000 tons, produces Idemitsu Green Energy Pellets (IGEP), biomass pellets designed as a coal alternative for industrial manufacturing and power generation. These pellets, made from renewable sources like wood and agricultural by-products, support near carbon-neutral operations due to the natural carbon absorption of plants during growth, aligning with global Net Zero goals. The IGEP pellets can be seamlessly integrated into existing coal-fired systems, enabling facilities to adopt cleaner energy without significant infrastructure upgrades.

Since 2020, Idemitsu has conducted trials, exporting black pellets to Japan for performance testing. The results showed high energy output, stability, and low ash content, meeting the requirements of coal-fired power plants. Looking ahead, Idemitsu plans to scale global production to 3 million tons annually, with Vietnam as a key hub.

The project also brings substantial socio-economic benefits to Vietnam. It generates employment opportunities for local workers, expands the market for domestic wood materials, and encourages local businesses to participate in the renewable energy supply chain. These efforts position Vietnam as a potential leader in Southeast Asia’s biomass energy sector.

Idemitsu’s initiative reflects Vietnam’s growing role in the global shift toward sustainable energy. With abundant raw materials and a strategic location, Vietnam is poised to attract significant investments in biomass pellet production over the next five years. This development supports the country’s commitments to reducing carbon emissions while fostering economic growth through integration into the global renewable energy market.

The launch of the Gia Lai facility marks a significant achievement for Vietnam’s renewable energy ambitions. By leveraging advanced biomass technology, the plant contributes to cleaner energy production and reinforces Vietnam’s status as an emerging hub for sustainable energy solutions in the region.