The transaction is expected to increase Tokyo Gas group’s renewable energy capacity by 126MW
Prominet Power, a wholly owned subsidiary of Tokyo Gas, has announced the acquisition of 126MW of wood pellet biomass power generation facilities in Toyama and Chiba Prefecture in Japan.
The facilities will be acquired from an Equis Group investment fund.
The two biomass power plants include the 51.5MW Fushiki Manyofuto plant in Toyama Prefecture and the 75MW Ichihara Yawatafuto facility in Chiba Prefecture.
The acquisition is expected to increase Tokyo Gas group’s renewable energy capacity by approximately 126MW.
The transaction is expected to be completed in middle of September 2020.
The Japanese natural gas utility stated: “Tokyo Gas group will continue expanding its renewable power business, both domestically and overseas, to achieve renewable power transaction volume to 5GW by 2030, aiming for the “netzero CO2 emissions” as set forth in Group Management Vision, “Compass 2030” launched last November.”
Fushiki Manyofuto biomass power facility to begin operations in October
Currently under construction, the Fushiki Manyofuto facility is expected to begin commercial operations from October 2021.
Construction on the Ichihara Yawatafuto biomass power plant is scheduled to commence in October this year. The power plant is expected to enter into operations in January 2024.
Tokyo Gas Engineering Solutions, a wholly owned subsidiary of Tokyo Gas will be selected as the owner’s engineering consultant to the Ichihara Yawatafuto plant.
The company will be responsible for the operation and maintenance of the facility.
In May last year, Tokyo Gas agreed to form a 50/50 joint venture with French energy company Engie to develop renewable energy projects in Mexico.
The joint venture was expected to strengthen the partnership which dates back to 1983.