Co-firing coal with renewable bio coal pellets allows thermal power plants to lower carbon emissions using existing infrastructure. These hydrophobic biomass fuels overcome traditional wood pellet limitations through superior water resistance, high energy density, and coal grindability. Utilizing black pellet energy enables power producers to transition away from fossil fuels without expensive plant retrofits. As energy grids globally incorporate low carbon energy sources, black pellets offer an immediate, highly reliable solution for cleaner baseload power.
Written by: Jonathan Stones
Published by: Power Wood Green Energy Holdings Ltd.
Published on: 21st July, 2026
Last updated on: 3rd November, 2026
THE ADVENT of artificial intelligence and the development of data centres to support AI has prompted the world’s most advanced economies to re-embrace coal.
A realisation inside developed nations, that energy levels needed to fuel agentic AI’s exponential growth go far beyond current capacities, has forced difficult decision-making around the fossil fuel.
The US, China, India and Japan have all been quick adjust positions on the use of coal-fired power generating infrastructure.
This summer Donald Trump announced plans to invest hundreds of millions of dollars to revive the US’ coal industry.
“We will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal,” he said.
The coal mega-export terminal is earmarked for Oakland in California. The coal-fired generating stations in Alaska and West Virginia will be the first in the US since 2013.
In Japan, Prime Minister Sanae Takaichi recently relaxed constraints on some power plants burning coal. Less-efficient coal-fired generating stations in the country are now allowed to bid in energy capacity market auctions again.
The world added nearly 100 gigawatts (GW) of new coal-power capacity in 2025. Nearly 95 percent of that global growth occurred in China and India, according to the latest annual report from Global Energy Monitor (GEM). [1]
China added 78GW of coal-fired power to its energy mix in 2025, and coal storage yards like this one in Ningbo City are becoming more commonplace across the country. But coal can be co-fired with steam explosion black pellets to help nations meet their climate targets.
While climate commitments may be wavering in the face of national needs for baseload power and energy security, cleaner electricity supplies can still be delivered from the build-out of this new coal infrastructure.
Black pellets provide a way to reduce carbon emissions from coal-fired power plants through their co-firing with the fossil fuel.
When produced correctly with technology from leading industrial engineers such as Valmet, steam-treated black pellets are capable of producing 23 MJ/kg of energy – a calorific value comparable with many bituminous coals.
Steam-treated black pellets also have multiple technical advantages over first generation white pellets – made essentially of only highly compressed sawdust.
They are durable and highly water-resistant, allowing them to be shipped, stored, processed and burned by generating stations in just the same way as coal.
Black pellets made by steam explosion leave just six percent of the carbon footprint of coal – largely due to the production process which makes them being a near net zero operation and the biofuel's lower carbon emission levels.
Power Wood Energy will use steam explosion to manufacture its black pellets from nature's wildfire-damaged waste stream wood, and reforest the areas which provided its deadwood feedstock.
Conventional biomass pellets must be transported and stored in specialized, climate-controlled containers and silos because exposure to moisture causes them to swell.
Infiltration of water reduces the structural integrity of white pellets, so they ultimately revert back to being sawdust once dry again.
This disintegration of white wood pellets can result in significant fuel loss. It also causes conveyor systems to clog and, in large volumes, it can also trigger a biological fermentation process which leads to self-combustion.
The steam explosion process softens and redistributes hydrophobic lignin, making black pellets highly water-resistant. This property enables power utilities to store steam-treated black pellets in open-air stockyards previously reserved for coal, and expose them to precipitation alongside coal. [2]
Black pellets' physical durability minimizes degredation and dust generation during handling, and it greatly reduces explosion risks in generating station facilities.
Conventional white pellet biomass is fibrous and elastic, and difficult to process in original and traditional milling equipment at coal-fired power generating stations.
The replacement of milling equipment for processing white wood pellets often constitutes a significatn proportion of the capital expense incurrred to retrofit facilities.
Due to high moisture contents found in white pellets, processing them causes spikes in mill power consumption, severe mechanical wear and an ultimately uneven particle size distribution.
Expensive plant modifications are inevitable to process white wood pellets.
Steam-treated black pellets are reinforced, by the redistribution of lignin. They possess much higher mechanical strength than white pellets as a result, with a Hardgrove Grindability Index (HGI) position which approaches that of coal.
Power generating stations can feed steam-treated black pellets directly into existing coal pulverizers, reducing the need for significant capital expenditure. Power requirements for pulverizing steam exposion black pellets with existing coal power station infrastructure are significantly lower than the power requirements for pulverizing white pellets. [2]
When processed with existing coal infrastructure's ball mills and vertical spindles, steam-treated black pellets fracture cleanly into a homogenous, fine, granular powder, rather than tearing into strings or causing motor overloads or losing biofuel volume during throughput.
Steam-treated black pellets possess all of the positive qualities of coal – high energy density, compatible grindability, total water-resistance – but burning them creates just six percent of coal’s carbon footprint, making them an ideal fuel for an energy transition pathway.
Dropping steam-treated black pellets into a coal furnace for co-firing with the fossil fuel quickens, improves and supports stable combustion thermodynamics. [3]
Standard white wood pellets contains large volumes of volatile matter, in the form of fast-burning chemicals and moisture [4]. They cause hot pockets of fire that destabilize furnace burns which can then become difficult to control. This heat-shock is also capable rupturing furnace boiler pipes.
The steam explosion process drives off a high proportion of those fast-burning chemicals before the black pellet reaches the power plant, allowing both fuels to be co-fired and consumed in synchronization.
Steam-treated black pellets release their flammable gases at the same speed as coal, and reach and complete their char burn-out phase at the same time as coal.
The optimal co-firing properties of steam-treated black pellets allow for precise control of furnace temperatures and eliminate any need for significant burner re-configuration or modification.
Traditional white wood biomass pellets contain elevated concentrations of alkali metals combined with chlorine.
During combustion in facility furnaces their potassium and sodium mineral deposits quickly become volatile at low temperature, and form molten eutectic salts that splash onto furnace walls. [4]
Over time, these salts form rock-hard slag which begins to corrode furnace walls, impedes heat transfer, reduce boiler efficiency and shorten the lifespan of furnaces.
The condensate draining phase of Valmet’s high-pressure steam explosion leaches away the majority of these water-soluble alkali minerals and chlorides. [5]
Ash produced by steam-treated black pellets doesn’t melt and splash onto furnace boiler tubes, to leave slagging and fouling.
Instead, it resists intense heat to form a dry powdery dust that drops into ash collectors without damage to furnace walls and reducing critical convective heat transfer.
Black pellets manufactured using steam explosion offer improved co-firing characteristics on preceding white wood pellets. Their net calorific value, low volatility, high bulk density, hydrophobicity and Hardgrove Grindability Index make them an ideal match for coal.
[1] Global Energy Monitor. (2026). Boom and bust coal 2026 - Tracking the global coal pipeline. https://globalenergymonitor.org/sites/default/files/2026-05/GEM-Boom-and-Bust-Coal-2026.pdf
[2] Biomass Magazine. (2018, March 1) William Strauss, Laurenz Schmidt. Are black pellets ready to compete with white pellets? https://biomassmagazine.com/articles/are-black-pellets-ready-to-compete-with-white-pellets-15072
[3] MDPI. (2025, March 7) Andrey Zhuikov, Dmitrii Glushkov, Andrey Pleshko, Irina Grishina, Stanislav Chicherin. Co-Combustion of Coal and Biomass: Heating Surface Slagging and Flue Gases. https://www.mdpi.com/2571-6255/8/3/106
[4] ECN. (2017, October 24) Biomass co-firing experience in NL & Black pellets status update. https://www.egnret.ewg.apec.org/Upload/202505121121119142a91.pdf
[5] Valmet Insights. (2017, October 24). A replacement for fossil coal in power plants: Black pellets and continuous BioTrac™ technology. Valmet Biofuels & Biomaterials Industry Reports. https://www.valmet.com/insights/articles/biofuels-and-biomaterials/black-pellets---a-replacement-for-fossil-coal-in-power-plants/