Vietnam Launches World's Largest Black Pellet Plant

Vietnam's renewable energy sector has just reached a significant milestone with the official commercial launch of the world's first global-scale black pellet production plant. The project marks a major step forward in the transition to clean energy and carbon emission reduction in Asia 

1. A Global-Scale Project in Vietnam

On October 8, 2025, Idemitsu Kosan Co., Ltd. announced the commercial operation of its black pellet production plant in Gia Lai province—a project recognized as the largest of its kind globally.

The plant has an annual capacity of 120,000 tons and specializes in producing the Idemitsu Green Energy Pellet (IGEP), a biomass pellet designed to replace coal in industrial manufacturing and power generation.

The plant's operation signifies a new era for Vietnam's biomass energy industry, affirming the country's growing role in the Asia-Pacific clean energy supply chain.

2. A Clean Energy Solution for Carbon Neutrality

IGEP black pellets are produced from renewable biomass sources, primarily wood and agricultural by-products.

Although combustion still produces CO₂, the process is considered nearly carbon-neutral thanks to the natural carbon cycle—where plants absorb CO₂ during growth—contributing to Net Zero targets.

Crucially, IGEP can be used directly in existing coal-fired systems, enabling thermal power plants and industrial facilities to switch to cleaner energy without requiring new capital investment in equipment.

3. Trial Results and Expansion Plans

Since 2020, Idemitsu has conducted trial runs and exported black pellets to Japan for real-world performance evaluation. The results demonstrated high calorific value, excellent stability, and low ash content, meeting the operational standards of coal-fired power plants.

In the next phase, the company aims to expand its global production to 3 million tons per year, with Vietnam serving as a strategic production hub.

4. Contributing to Local Sustainable Development

Beyond its positive environmental impact, the project delivers significant socio-economic benefits:

• Creates new jobs for the local workforce.

• Expands the domestic market for wood materials.

• Encourages Vietnamese businesses to join the renewable energy supply chain.

This is seen as a crucial first step toward establishing Vietnam as a leading biomass energy production center in Southeast Asia.

5. Growth Prospects for Vietnam's Biomass Pellet Industry

Amid the global shift to green energy, biomass pellets are emerging as a sustainable alternative to coal. With its abundant raw materials and strategic logistics location, Vietnam is expected to attract significant new investment in this sector over the next five years.

Domestic enterprises have a major opportunity to integrate deeper into the global renewable energy supply chain while helping to realize Vietnam's national emissions reduction commitments.

6. Conclusion

Idemitsu's operation of the world's largest black pellet plant in Vietnam is not just an industrial achievement; it is a clear commitment to the green energy transition. This milestone firmly establishes Vietnam as a strategic destination for the international biomass energy industry.

Sources:

• Cafef.vn – World's largest black pellet plant in Vietnam officially begins commercial operation

• Idemitsu Kosan – Green Energy Pellet Project Overview