Japanese renewable power producer Renova Inc has closed the financing needed to realise the 49.9-MW Karatsu Biomass Power Plant project in Saga prefecture. The company said that it made a final investment decision for the project and signed a financing agreement with a group of lenders. Sumitomo Mitsui Banking Corp and The Bank of Fukuoka Ltd acted as lead manager and co-arranger, respectively, while SMFL MIRAI Partners Co Ltd served as mezzanine lender.
The biomass-fired plant will use wood pellets and palm kernel shells (PKS) as a fuel source. Its annual output is estimated at about 350,000 MWh, or enough to meet the consumption of approximately 110,000 households each year. Commissioning is planned for December 2024.
Renova is developing the project alongside utility Toho Gas Co Ltd (TYO:9533), which owns a 34% interest in the project, while JA Mitsui Leasing Ltd and Innocent Co Ltd own 16% and 15%, respectively.
With 35%, Renova is the largest shareholder and has the right to buy the 16% interest held by JA Mitsui on or after the facility is built, the company noted.