The biomass sector in Japan has had a whirlwind of a year. On the one hand, several large biomass projects came online, such as Osaka Gas’s Sodegaura plant and Renova’s Omaezaki plant, adding 150 MW of total capacity.

On the other hand, these are most likely the last new large-scale plants to open for the rest of the decade. Multiple major players have already frozen further development of biomass projects in Japan this year. Also, changes in government policy are likely to reshape the availability and profitability of woody biomass fuels, limiting interest in new capacity.

Japan relies heavily on imported biomass – mainly wood pellets from North America and palm kernel shells from Southeast Asia – because the domestic supply of forestry residues and agricultural waste is too limited and costly to meet the needs of its substantial biomass power sector.

Still, as stated in the 7th Basic Energy Plan released earlier this year, current national targets aim for a 5-6% share of biomass in the national energy mix by 2040. With this goal and many recent changes in mind, what prospects might the biomass sector see in the coming years?