Investment in a biomass power plant in Yamagata prefecture
Investment Date: December 24, 2015
Commercial Operation Start: January 2018
Yonezawa Minami biomass power plant is our first investment in biomass power. Unutilized, general wood materials for fuel are delivered mainly from Yamagata, Fukushima and Miyagi prefectures. The power plant has been developed with our strategic business partner, Green Thermal (GT).
In addition to this case, GT is developing multiple, similar-sized biomass power plants. The second joint project we developed together is in Wakayama Prefecture and started operating in June 2020. GT is working on the development of biomass power plants to promote forestry industry in Japan, as it has an advantage in the operation and maintenance of the power plants. With a background in forestry business, it has secured the supply of fuel sources through building relationships with the local forestry families and also has experience with projects in multiple locations. GT is in charge of the entire process in this power plant, including development, fuel supply, operation and maintenance. We believe that the project’s use of local timber as fuel source and employment of local workers also contribute to the local economy. The project finance is organized by local financial institutions: Toho Bank and Yamagata Bank.
Yamagata Minami biomass power plant has safely operated since January 2018. We will keep monitoring the operation. In the meantime, we will continue to actively explore the investment opportunities in the development of the midsized biomass power plants in collaboration with GT.
Posted on December 24, 2015