Japanese power utility Chubu Electric Power and five other firms have signed a loan agreement to build a 28.11MW biomass-fired power generation plant in western prefecture Tottori's Sakaiminato city.
The companies and an unspecified financial institution signed an agreement to finance the project on 15 February. Chubu did not disclose the investment amount.
Chubu aims to utilise the funds to start building the power plant by November, and begin commercial operations by May 2026. The power plant will consume 174,000 t/yr of wood chips from locally-sourced general wood material, unused wood material and construction waste, as well as 20,000 t/yr of wood pellets, imported mainly from Vietnam.
Chubu owns a 44.9pc stake in the project, while joint venture New Circle Energy and trading firm Inabata Sangyo will own 25pc and 20pc respectively. Construction firm Chubu Plant Service has a 5.1pc stake, with shipping firm NX Sakaiminato Kairiku and waste management company Sanko holding 2.5pc each.
Chubu has expanded its biomass power business to shift away from coal and gas-fired power generation, targeting carbon neutrality by 2050. The company is also building the 52.7MW Fukuyama biomass power plant in southwest Japan's Hiroshima prefecture, aiming to start commercial operations in May 2025.
Japan imported 2.4mn t of wood pellets from Vietnam in 2022, up by 45pc from the previous year, according to the finance ministry. Purchases from Vietnam accounted for 54pc of Japan's total imports in 2022.
