Japan’s Chubu signs loan agreement with five firms for new biomass plant
The agreement to finance the plant was signed by the companies and an unspecified financial institution on 15 February, although Chubu did not disclose the investment amount.
Chubu intends to harness the funds to begin building the biomass plant by November, and to begin commercial operations by May 2026.
The power plant will consume 174,000 t/yr of wood chips from locally-sourced general wood material, unused wood material and construction waste, as well as 20,000 t/yr of wood pellets, imported mainly from Vietnam.
Chubu owns a 44.9% stake in the project, while joint venture New Circle Energy and trading firm Inabata Sangyo will own 25% and 20% respectively.
Construction firm Chubu Plant Service has a 5.1% stake, with shipping firm NX Sakaiminato Kairiku and waste management company Sanko holding 2.5% each.
Chubu has expanded its biomass power business to shift away from coal and gas-fired power generation, targeting carbon neutrality by 2050. The company is also building the 52.7MW Fukuyama biomass power plant in southwest Japan's Hiroshima prefecture, aiming to start commercial operations in May 2025.