Image: Black pellet production plant of Idemitsu Green Energy Co., Ltd., a wholly-owned subsidiary of Idemitsu Kosan Co., Ltd.
Idemitsu Kosan Co., Ltd. recently commenced commercial operations at its newly constructed plant in Gia Lai Province, Vietnam (formerly Binh Dinh Province), on October 8, 2025. The facility produces black pellets (BP), a biomass fuel.
This marks Vietnam’s first commercial-scale black pellet production plant, boasting an annual capacity of 120,000 tons—one of the largest globally.
The Idemitsu Green Energy Pellet (IGEP) produced here will serve as a coal alternative for Japanese customers, aiding their carbon neutrality and emission reduction goals.
Black pellets, derived from heat-treated wood, emit CO2 during combustion. However, the wood’s CO2 absorption during growth achieves carbon neutrality. IGEP is tailored for customers transitioning from coal to decarbonize their operations.
Since 2020, Idemitsu has operated a small-scale black pellet pilot plant in Vietnam, supplying IGEP to approximately 20 Japanese companies. Trials confirmed IGEP as a stable, efficient coal substitute. With high calorific value from heat-treated wood pellets, IGEP mirrors coal’s physical properties, enabling seamless infrastructure transitions for coal users.
Image: Idemitsu Green Energy Pellet (IGEP)
Aligned with its 2030 vision—“Trusted Partner for a Brighter Future”—Idemitsu aims to supply 3 million tons of black pellets annually worldwide.
Beyond ensuring energy stability, Idemitsu supports customer decarbonization and contributes to Vietnam’s socio-economic growth through job creation and sustainable domestic wood sourcing.
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