Japan-based power producer Sumitomo will begin construction on a 75MW biomass power plant in Aichi prefecture as a new power supply source for Summit Energy's electric power retail business.
To be built adjacent to the Port of Kinuura in Handa-city, the Handa biomass power plant will be operated by Summit Handa Power.
The total project cost is expected to be around JPY20bn ($197m).
The power plant, which is claimed to be the largest pure biomass-fired power plant in the country, will be put into commercial operation within the fiscal year 2016.
Construction work on the project will begin next month.
Biomass fuel will be procured from domestic and abroad through Sumitomo Corporation's Materials & Supplies Division, which has expertise in handling wood chips and palm kernel shells.
The two companies are considering another biomass plant in eastern Japan.
The Handa biomass power plant will be Summit Energy's second biomass power plant, the first being Itoigawa biomass power plant (50MW) that went into commercial operation in January 2005.