Mitsui to fund Japanese biomass project
Mitsui & Co., Ltd., Iwakura Corporation, Sumitomo Forestry Co., Ltd., and Hokkaido Gas Co., Ltd. have signed a shareholder agreement providing for joint investment in the 5.8 MW Tomakomai biomass power project in Japan.
The new company, Tomakomai Biomass Power Generation Co., will develop and operate a wood biomass power generation facilities with a capacity of approximately 5.8 MW. The plant will be located in the Harumi-cho district of Tomakomai City.
Construction will begin in May 2015, and the facility is expected to be in operation by December 2016.
The facility will be fueled by wood chips produced entirely from unused timber from forests in Hokkaido. Following the start of operations, the new business is expected to generate additional demand for approximately 60,000 tons of timber annually.
The business will have wide-ranging social significance. In particular, it will encourage the maintenance of forest environments while stimulating the development of forestry in Hokkaido and contributing to job creation and regional revitalization.
Mitsui owns approximately 44,000 hectares of forests throughout Japan. Around 80% of Mitsui's forests, with an area of about 35,000 hectares, are located in Hokkaido. Following the start-up of the business, the new company will be supplied with previously unused timber from these forests.
