RENOVA reaches financial close on Tokushima Tsuda Biomass Power Plant
Japan-headed developer and operator of renewable power plants RENOVA, Inc, has announced that it has reached financial close and made a final investment decision regarding the Tokushima Tsuda Biomass Power Plant GK in the City of Tokushima, Tokushima Prefecture.
Japan-headed RENOVA operates its power generation business based on locally available renewable energy resources such as solar, biomass, wind, and geothermal energy. In biomass, the company is “accumulating its knowledge and experience” through the development and operation of the 20.5 MWe Akita Biomass Project that it joined in 2015 as well as the 75 MWe Kanda Biomass Project, which began construction during 2018.
Taking advantage of its knowledge and experience, RENOVA has reached financial close on the 74.8 MW Tokushima Tsuda Biomass Project. It will now work on the development together with co-sponsors Osaka Gas Co., Ltd, NEC Capital Solutions Ltd and Mitsubishi Electric Credit Corporation along with local co-sponsors Genboku Co., Ltd, Dairi Lumber Co., Ltd and Tokushima Denki Sangyo Co., Ltd.
Using wood pellets and palm kernel shells (PKS) as fuel, the plant will generate electricity for the grid under the JPY 24 per kWh feed-in tariff (FIT) rate. Plant construction is scheduled to begin during spring 2019 and operations estimated to begin in March 2023.
The financial close led to the formation of a project finance syndicate. Sumitomo Mitsui Trust Bank Ltd as lead with Awa Bank Ltd, Nippon Life Insurance Company, Shiga Bank Ltd, Tokushima Bank Ltd, Nanto Bank Ltd, Dai-ichi Life Insurance Co Ltd, Joyo Bank Ltd, Shoko Chukin Bank Ltd, Daishi Bank Ltd, Bank of Kochi Ltd and Mitsubishi UFJ Lease & Finance Co Ltd as mezzanine lender.
RENOVA currently has a 36.1 percent stake in the project and holds the right to additionally acquire 24.7 percent equity in the special purpose company owned by NEC Capital Solutions Ltd and Mitsubishi Electric Credit Corporation on or after the date of completion of the Tokushima Tsuda Biomass Power Plant.