Leading company pulls out of palm oil power plant project in Kyoto

The company leading a project to create Japan’s largest-scale palm oil power plant in Kyoto Prefecture has informed a citizens’ group fighting the development that it has decided to pull out of the project.

On April 23, the group Association Considering the Environment of Western Maizuru posted a letter on its website. It was from the executive chairman of Amp, Paul Ezekiel, revealing that the company and its group will withdraw from the Maizuru Biodiesel Electric Power Plant project.

The head of the association, Takashi Morimoto, wrote on his website that he was happy and grateful for Amp’s decision. “We believe Amp’s courageous decision will lead future issues related to Japan’s renewable energy in a good direction.”

The letter, dated April 22, also says the Amp group in future will not consider electric power projects that use palm oil for fuel. Amp is a global renewable energy infrastructure manager, developer and owner.

Strong opposition from residents against the project

There were numerous issues including obtaining funds for the large-scale project. The Mainichi Newspaper reported that Amp has told it that there were also strong opposition from Maizuru residents.

Japan’s Hitachi Zosen is in charge of construction, operation and maintenance of the plant.

The biomass electric power plant is set to burn 120,000 tons of palm oil a year to produce maximum output of 65.6 megawatts, which is equivalent to the power usage of about 120,000 homes. The electricity will be sold to the Kansai Electric Power Co.

Although a simple comparison suggests that the use of palm oil creates less greenhouse gas (GHG) than the burning of fossil fuel, many environmentalists oppose the use of palm oil. Particularly because they believe it leads to deforestation in the countries that produce the oil and how that process exposes peat-rich ground, releasing carbon. When those factors are included in the calculation of GHG, palm oil is more destructive to the environment, they say. The European Union cites those concerns in its plan to ban the use of palm oil in biofuels by 2030.

Concerns over the sustainability of palm oil

Maizuru Green Initiatives, which was funded by Amp’s Japanese entity, says that, in line with guidelines from the Ministry of Economy, Trade and Industry, it plans to use oil accredited by the Roundtable on Sustainable Palm Oil, to protect against those fears. However, the World Wildlife Fund in Japan says using RSPO doesn’t ensure the sustainability of palm oil used as fuel. It has also called on Hitachi Zosen, Maizuru City, Kyoto Prefecture and METI to disclose the basis of the decision on the sustainability of the fuel.

Residents who oppose the Maizuru plant are also concerned about the threat of deforestation seen in palm oil-producing countries. But that is not their only concern. Morimoto told Harbor Business Online that his association has been talking with members of a similar group formed by residents near Japan’s first power plant using inedible palm oil as fuel. Sankei Energy Co.’s biomass plant started operation in Fukuchiyama City, also in northern Kyoto Prefecture, in 2017. Nearby residents complain of a horrible odor that makes them feel sick, and constant noise that disturbs their sleep. This plant, much smaller than that planned for Maizuru at 2 megawatts, forebodes worse.

The fight goes on

Morimoto says he will continue the fight against the plant with Hitachi Zosen and Maizuru City.

Sankei Energy describes palm oil power plants as advantageous, because of their lower initial investment costs compared with other power generation facilities due to smaller land and equipment needs. Like other palm oil power plants, the Maizuru project is also expected to benefit from the government’s Feed-in Tariff, a fixed price purchase system for renewable energy.

There are advantages to using palm oil. Some studies show that oil palms produce a much higher yield of oil than biofuels like soybeans, sunflowers or rapeseed. It is difficult to determine what the right approach is, but consensus is our best path to creating sustainable methods.