Mixing biomass has given J-Power's inefficient coal-fired Power plants a new lease of life

Electric Power Development Co. sold its stake in a 149MW coal-fired Power plant to eRex Co., a major developer of biomass Power plants in Japan, on Aug. 1. The deal highlights a loophole in Japan's decarbonisation policy that could prevent the retirement of inefficient coal-fired power plants.

ERex plans to burn biomass at the coal plants it acquires. According to Japan's coal-fired power plant efficiency standards, mixing biomass or ammonia in coal-fired power plants helps to improve the calculated efficiency used to meet compliance requirements. Non-compliant and inefficient coal plants must be retired by 2030. Thanks to lax standards, eRex can operate the coal-fired plants it has acquired beyond 2030.