JFE Engineering to build USD-123 million biomass plant in Aichi prefecture

JFE Engineering will construct a biomass plant in Aichi prefecture of central Japan worth JPY-14.8-billion (USD 123m/EUR 101m). The Japanese firm has joined hands with local builder Kajima Corp and two other partners to win the contract from the city of Toyohashi.

A new company will be formed under the joint venture to construct and operate the biomass plant.

JFE will hold 60% in the joint entity. However, the financial details of engineering, procurement and construction (EPC) are not yet disclosed.

JFE had already secured another contract to build a 50-MW biomass power plant in Oita prefecture for Japanese power supplier Erex Co in September 2014.

Sewage and food waste will be used in the biomass plant. The electricity produced is expected to be sold under Japan’s renewable power feed-in tariffs (FiTs). Japan’s FiT scheme was introduced in 2012 to boost the use of renewable sources of energy in the country and help reduce its dependence on nuclear energy.

The country has added 90 MW of biomass power capacity between July 2012 and end-April 2014, as per data from the Agency for Natural Resources and Energy (ANRE).

More on Japan’s biomass power markets will be discussed at Japan Biomass Power Market on 19-20 May, 2015 in Tokyo.

Contact Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218 for more details.