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Forest Energy and Cortus sign deal on strategic cooperation in Japan

Forest Energy (Kuni Umi Biomass Inc.) and Cortus Energy have confirmed a recently signed Letter of Intent (LoI) to cooperate on joint small-scale biomass to power projects in Japan.

Japanese cedar (Cryptomeria japonica) logs and off-cuts stockpiled at a pellet plant. The species is endemic and accounts for around 44 percent of the plantation forest estate.
Japanese cedar (Cryptomeria japonica) logs and off-cuts stockpiled at a pellet plant. The species is endemic and accounts for around 44 percent of the plantation forest estate. Japanese cedar (Cryptomeria japonica) logs and off-cuts stockpiled at a pellet plant. The species is endemic and accounts for around 44 percent of the plantation forest estate.

Forest Energy (Kuni Umi Biomass Inc.), a Japanese bioenergy project developer and operator and Cortus Energy, a Swedish biomass gasification technology developer have confirmed a recently signed Letter of Intent (LoI) to cooperate on joint small-scale biomass to power projects in Japan.

Forest Energy has developed two biomass power projects with a total capacity of 25 MW electricity. However the strongest incentives with high feed-in tariffs are found within the small-scale segment, up to 2 MWe and Forest Energy has conducted extensive studies on different technologies to enter this sector with. According to Shingo Numa, President of Forest Energy, Cortus Energy’s patented WoodRoll biomass gasification process has proven to be the technology with the greatest potential and the best fit for the Japanese possibilities.

– We are very pleased to work in partnership with Cortus Energy to introduce WoodRoll technology in Japan. The technology not only provides a cost effective solution for the small-scale biomass market, but also the flexibility to produce green hydrogen, which we believe will be the new energy source in the coming years. We are confident that our joint efforts will result in a successful and profitable cooperation between Sweden and Japan, said Shingo Numa, President of Forest Energy in a statement.

Significant project pipeline

Forest Energy will use their experience and expertise to identify and develop small-scale projects based on WoodRoll to convert biomass to electricity. With the structured financing of projects will Cortus Energy becoming partners on favourable terms.

The strategic cooperation is contingent on the realisation of a first 2 MW electricity pilot project, based on the modular 6 MW WoodRoll plant. The pilot project will form the basis for future cooperation. The potential for the next 5 years is up to 25 projects. Forest Energy will order the basic engineering for the pilot project in June and an order for the pilot project will be within 12 months. The design of the pilot project needs to be completed, and Forest Energy is working to get all the necessary permits, secure long-term biomass supply, feed-in tariffs as well as a structured financing of this and following projects.

– We are very pleased to start cooperation with Forest Energy, a perfect partner whose expertise is unparalleled in previous business ventures. They have critical skills and experience to successfully establish and develop projects for biomass and provide a structured project for the lucrative renewable electricity market in Japan, said Rolf Ljunggren, CEO of Cortus Energy.

 

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