The biomass power facility, which will utilise palm kernel shells and coal as fuel, will be constructed in Oita prefecture, reports Bloomberg.
JFE Engineering secured an engineering, procurement and construction contract for the facility.
The facility will commence operations in the fall of 2016.
The financial details of the order are not yet known.
Headquartered in Tokyo, Japan, JFE Holdings was formed in 2002 following the merger of NKK and Kawasaki Steel Corporation .
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