Tokyo-based First Energy Service (Fesco) aims to build an 18MW wood-fired biomass plant located in Oita prefecture, Japan.
The project is being financed by Sumitomo Mitsui Banking and partners who will provide a ¥6.3bn ($61.7mn) loan for construction of the plant.
Fesco currently operates the 11MW Daishin wood-fired plant located in Fukushima and the 12MW Hita wood-fired plant located in Oita.
Separately, Sumitomo and its partners will provide a ¥2.2bn loan to Tokyo-based Fujikoh.
The loan will finance the construction of a 6.25MW wood-fired power plant in Ichinohe, Iwate prefecture.
The plant will be operated by Fujikoh subsidiary Ichinohe Forest Power. Wood chips for the plant will be supplied locally from forests in northern Akita and Iwate prefectures.
Japan is widely expected to increase imports of wood chips and wood pellets in the coming years, as the country plans to increase power generation from renewable sources by 50pc to 141.4TWh by 2020 — equivalent to 13.5pc of total generation.
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