Construction of the plant in Japan's northeastern prefecture of Miyagi is scheduled to start by February next year, with commercial operations targeted by November 2023. The plant will consume 310,000 t/yr of wood pellets mainly from North America and palm kernel shells (PKS) from Indonesia and Malaysia to generate around 553,300MWh.
Renova, forestry firm Sumitomo Forestry, construction company United Keikaku, financial company Mizuho Leasing and investment firm Daiwa Securities' joint venture RenoDa Partners have established a joint venture, Morino Miyako Biomass Energy, to build and operate the plant. Renova owns 29pc of the venture, while Sumitomo Forestry and United Keikaku hold 15pc and 25pc respectively. Mizuho Leasing and RenoDa Partners have 17pc and 14pc stakes.
Renova may acquire some of the shares held by the other firms to raise its stake to 60pc once the plant starts operations.
The plant was registered under Japan's country's feed-in-tariff (FiT) scheme in 2017 as part of Sendai city's plan to redevelop port areas that were hard hit by the March 2011 earthquake and tsunami. All the electricity will be sold at a fixed price of ¥24/kWh ($228.8/MWh) for 20 years after commissioning.
Renova is involved in multiple biomass power projects including the 74.95MW Ishinomaki Hibarino and 75MW Omaezaki plants, as it takes advantage of the FiT scheme.
Japan imported 1.3mn t of wood pellets during January-August, up by 30.2pc from the same period last year, according to finance ministry data. PKS purchases increased by 59.1pc to 1.4mn t over the same period.
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