Three companies including Itochu Corp will build a 49.9MW thermal power plant that combusts only biomass in Ichihara City, Chiba Prefecture, Japan, and start operation of the plant in October 2020.
To run the project, Itochu established Ichihara Biomass Power Co Ltd by investing in the company jointly with Osaka Gas Co Ltd and Mitsui Engineering & Shipbuilding Co Ltd (MES). For the plant, MES will provide construction, operation and maintenance services while Itochu will supply biomass fuel.
The plant uses palm shells and wood pellets as fuel. They are procured from Southeast Asia. Part of the fund required for the construction and operation of the plant will be raised through non-recourse project financing.