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Equis Bioenergy issues Notice to Proceed on 50 MW Toyama biomass power project

In Japan, Equis Bioenergy K.K, a subsidiary of Singapore-headed Equis Pte Ltd, one Asia’s largest independent infrastructure and real asset investment managers has issued Notice to Proceed (NTP) on its 50 MW biomass power plant in Toyama Prefecture, which is located approximately 250 km north-west of Tokyo. Construction is expected to commence in Q2 2019, and the plant is scheduled to deliver power in Q3 2021.

According to a statement, Toyo Engineering Corporation will undertake the construction works under a full turnkey engineering, procurement, and construction (EPC) contract. Toyo Engineering is one of Japan’s most experienced construction companies having constructed over 4.8 GW of thermal power projects globally. The power plant will utilize an Andritz boiler, and a Siemens turbine and generator.

The power plant will be fueled by wood pellets supplied under a 20-year, fixed-quantity, and fixed-priced contract. All feedstock will be certified by the Forest Stewardship Council (FSC) to guarantee production from sustainably managed forests and supply chains.

Equis Bioenergy has also concluded an Operations & Maintenance (O&A) agreement with TEPCO F&P, Japan’s largest and “most experienced” operator of thermal power plants with 41 GW of thermal power plants in Japan and over 55 GW globally.

The project will sell power to Hokuriku Electric Power Company (HEPCO) under Japan’s Feed-In-Tariff (FIT) regime. Under the terms of the Power Purchase Agreement (PPA), HEPCO will purchase power from the project at JPY 24 per kWh for a period of 20 years.

Additionally, the construction and operations of the plant will create hundreds of jobs and is expected to spur economic growth in Toyama and the surrounding communities. The project secured JPY 25 billion (≈ EUR 190.6 million) of non-recourse project financing committed from nine syndication banks led by Sumitomo Mitsui Trust Bank and Shinsei Bank.

Equis Bioenergy is pleased to work with the local communities on this project. The Equis Bioenergy team has a proven track record of developing and operating sustainable biomass projects. Our aim is to develop a total of 500 MW of projects in Japan and generate significant opportunities for the local economy. In addition to the Toyama project, Equis Bioenergy expects to issue NTP on a 75 MW biomass project in Chiba Prefecture in Q1 2019, said Adam Ballin, Representative Director of Equis Bioenergy.

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