Showa Shell lands 49-MW biomass plant order from Showa Shell

Oct 7, 2013 - JFE Engineering, part of JFE Holdings Inc (TYO:5411), said Monday it had won an order to construct a 49-MW biomass facility for Showa Shell Sekiyu KK (TYO:5002) in eastern Japan.

Under the engineering, procurement and construction contract, the value of which was not disclosed, JFE Engineering will install the plant on a former refinery site in Ohgimachi, Japan's Kanagawa prefecture on Honshu island. Planned to use woody biomass and palm kernel shells as fuel, the JPY-16-billion (USD 165m/EUR 121m) biomass facility is scheduled to be put on stream in December 2015. Once operational, it will be able to produce about 300,000 MWh of power each year, enough to supply 83,000 households, Showa Shell, the Japanese refining subsidiary of Royal Dutch Shell (LON:RDSA), said when announcing the project in August.

The planned system's proximity to a major urban area and its coastal location offer great infrastructure benefits and will facilitate the delivery of fuel for the plant, the developer noted. It will also take advantage of Japan's attractive feed-in tariffs for renewables, launched in July 2012.

The project is part of Showa Shell's Medium-Term Business Action Plan to expand the sources of power generation in its electric power segment.

(JPY 100 = USD 1.030/EUR 0.759)

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