Sumitomo provides funding for biomass plants in Japan

A unit of energy company First Energy Service is building a wood-fired biomass plant to be located in Oita Prefecture, Japan.

Sumitomo Mitsui Banking and partners will provide a 6.3 billion yen (€45 million) loan for the 18MW plant, Bloomberg reports, which was signed by a group of banks including the Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank.

In addition, Sumitomo is also supplying a 2.2 billion loan to Fujikoh Co., which is building a biomass-fired power plant in Iwate Prefecture.

The trade ministry is said to have approved projects totalling 691MW of capacity in a one-month period, adding to the 874MW of existing output that had been approved since the introduction of an incentive programme in July 2012.