Mitsubishi Corporation Power (MCP) and Kansai Electric Power (KEPCO) have initiated works to build a new 200MW biomass power generation plant in western Japan.
The project is being executed through Aioi Bioenergy Corporation, a joint venture (JV) between MCP and KEPCO that was formed in April last year. KEPCO holds 60% stake and MCP 40% in the JV.
The commencement of works on the project follows on from an agreement reached by Aioi Bioenergy with the lenders for a loan under a non-recourse project finance scheme.
Aioi Bioenergy is currently working on plant design, as well as procurement of equipment for the new plant.
This project will see conversion of Unit 2 of Aioi Power Station in Hyogo Prefecture, which has been offline since 1 April this year and uses heavy or crude oil as fuel sources.
The unit will be converted to use natural wood pellets as a fuel source, allowing the biomass power generation facility to operate as a baseload plant and help in minimising carbon emissions.
In addition, the unit will undergo upgrades such as boiler construction, fuel conveyer systems, turbines and replacement of relevant plant components and other necessary refurbishments.
The biomass power generation plant will be operational for a period of 20 years beginning from January 2023.