Tokyo Gas to buy 126 MW of biomass projects in Japan

A fully-owned unit of Japanese natural gas utility Tokyo Gas Co Ltd (TYO:9531) has agreed to acquire two biomass power plants in Toyama and Chiba Prefecture totalling 126 MW from a fund managed by the Equis Group.

Under the terms of the deal, Prominet Power Co Ltd will buy Fushiki Manyofuto Biomass Power GK, the owner of a 51-MW plant under construction, and Ichihara Yawatafuto Biomass Power GK, which holds a 75-MW project.

The smaller facility is expected to become operational in October 2021 and the other one in January 2024. Both will run on wood pellets and will sell power at a price of JPY 24 (USD 0.226/EUR 0.191) per kWh.

The acquisition is expected to close in mid-September.

With the assets in this transaction, Tokyo Gas’ portfolio will expand to more than 1,300 MW, including 256 MW of domestic projects and about 1,080 MW overseas. The company is targeting a renewable power transaction volume of 5 GW by 2030.

(JPY 100 = USD 0.941/EUR 0.798)

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