Investment Date: January 11, 2020
Commercial Operation Start: June 2020
We have invested in and developed the second midsized biomass power plant that uses local wood materials as fuel in cooperation with our strategic partner Green Thermal (GT). This is the first biomass power plant in Wakayama prefecture.
GT is the pioneer in Japan of the development of midsized biomass power plants that mainly use unutilized wood materials as fuel. We believe that it is critically important to secure fuel sources and to ensure safe and stable operation and maintenance for the biomass power plant businesses to succeed. With a background in the forestry industry, the company has an advantage in establishing a strong and long-lasting relationship with forestry companies, making stable purchase of wood chips from a diverse network possible. GT has an advantage in the operation and maintenance of biomass power plants as well. We also believe that biomass power plants that employ local workers and source fuel from local communities bring positive influence to the local forestry industry. We decided to invest in this project, not merely for our own profit but also to create a driving force in the development of local economy and forestry businesses. Following the first project in Yamagata prefecture, this is the second biomass power plant we have developed with GT. Kiyo Bank, the prominent regional financial institution, led the project finance as an arranger and an agent.
While the performance of this power plant is beyond our expectations so far, we will carefully keep monitoring the operation as this is a 20-year-long project. We will continue to actively explore the investment opportunities in the development of the midsized biomass power plants in collaboration with GT.
Posted on January 12, 2018