Asia-focused renewables company Equis Development Pte Ltd (EDL) today said it has obtained USD 282 million (EUR 240.3m) in syndicated debt for a 50-MW biomass project in Japan's Niigata prefecture.
The Singapore-based renewable energy and waste infrastructure developer has issued a notice to proceed, giving the start to engineering, procurement and construction (EPC) works. The onsite construction of the Niigata East Port biomass project is set to begin in May 2022, with the plant scheduled to become operational in October 2024.
The non-recourse debt financing was extended by 14 lenders and insurance companies led by Sumitomo Mitsui Trust Bank and Daishi Hokuetsu Bank.
EDL is implementing the scheme under a joint venture with Japan’s Tohoku Electric Power Co Inc, which owns a 20% interest and will act as owner’s engineer and plant operator. The facility’s output will be sold to a unit of the electric utility under a 20-year fixed-price power purchase agreement (PPA) under the country’s feed-in-tariff (FiT) programme. The produced power will be enough to supply around 117,000 homes per year.
Niigata East Port is EDL’s third biomass project in Japan, where it is also developing another one -- the 50-MW Tomatoh biomass scheme in Hokkaido. The firm has pledged to over USD 2 billion into renewable energy and waste infrastructure initiatives in Australia, Japan and South Korea over the next two years.
(USD 1.0 = EUR 0.852)
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