Renova has agreed to acquire additional shares in Kanda Biomass Energy’s power generation project.
Kanda Biomass’s project will have an installed capacity of around 75 MW – enough to power approximately 170,000 households annually - and is expected to become operational in June. If the agreement with Renova is confirmed, Kanda Biomass is expected to become a consolidated subsidiary of Renova.
With a mission of creating green and sustainable energy systems, Renova operates its power generation business including biomass, wind, solar, and geothermal power. The company signed an option agreement with Veolia Japan, one of the co-sponsors of Kanda Biomass, regarding an option to acquire all shares (10%) held by Veolia Japan.
The option to acquire the shares is conditional on the project becoming operational as planned, among other terms. If the option is exercised, Renova will hold a 53.7% stake in Kanda Biomass, and Kanda Biomass will become a consolidated subsidiary of Renova.
Renova is ‘fully committed’ to the Kanda Biomass project, which will utilise wood pellets, palm kernel shells, and domestic wood chips, and is looking to redouble its efforts with local stakeholders ‘for the betterment of the community’ through stable operations of the power generation project.
Veolia Jenets, a subsidiary of Veolia Japan, will continue to undertake the operations and maintenance of the project.