Contract
Three of Japan’s cement companies are looking to the IPP market to compensate for declining sales of their main product, Dow Jones reports.
Taiheiyo Cement Corp is to build a coal-fired power plant at an affiliate’s site in Niigata Prefecture to provide 134 MWe to Tohoku Electric Power Co from July 2001. The company will also provide Shikoku Electric Power with 150 MWe from its Kochi Prefecture plant from 2005. The projects, based on 15-year power purchase agreements, should earn around $80 million in annual sales.
Sumitomo Osaka Cement Co will build a 65 MWe power plant at its facility in Kochi Prefecture in anticipation of entering the IPP business in 2005. Meanwhile Ube Industries, together with trading company Nissho Iwai Corp, plant to jointly construct a 195 MWe power plant at Ube’s site in Yamaguchi Prefecture. The station will supply power to Chugoku Electric Power Co in 2004.