Japan Investment Adviser Co., Ltd. (JIA Group), a financial services and investment firm has announced that it is investing in Sagamihara Biogas Power Co., Ltd (Sagamihara BGP), a special purpose vehicle (SPV) that plans to build a biogas power plant in Sagamihara-city, Kanagawa Prefecture using food waste as feedstock.
Amongst other services, JIA Group is engaged in operating leases, and renewable energy generation operating solar power plants since 2014.
To date, it operates a portfolio of 25 solar power plants nationwide, with a total power generation output (solar cell base) of 71.3 MW.
The aim for JIA Group is to develop a 500 MW renewable power generation portfolio within five years hence the decision to invest in Sagamihara BGP, the Group’s first venture into biogas, leveraging its fundraising capabilities as a financial solution provider.
Convert food waste to renewable power
Partners in Sagamihara BGP include Japan Food Ecology Center Inc. (J.FEC), Alterna Feed Inc., and Green Finance Institute (GFI).
J.FEC operates a pig feed production plant in which it accepts and processes food waste from food manufacturers and supermarkets.
After pre-processing (liquefaction), the waste that cannot be converted into feedstuff will be supplied to the planned biogas power plant.
The 528 kW output biogas plant will supply 487 kW of electricity to the regional power grid with TEPCO Power Grid as the buyer.
The start of construction for Sagamihara BGP is scheduled to begin in June 2022 and the start of power supply to the grid is expected in October 2023.
The JYP 1 billion (≈ US$7.6 million) project is to be financed via loans from regional financial institutions.
