Japanese renewable power producer Renova Inc has achieved financial close for the 74.95-MW Ishinomaki Hibarino biomass power project in Miyagi prefecture.
The company said today that it made a final investment decision for the project and then signed a financing agreement with 18 financial institutions. Mizuho Bank Ltd and Sumitomo Mitsui Banking Corp are acting as lead arrangers, while JA Mitsui Leasing Ltd serves as mezzanine lender.
Renova is developing the scheme alongside Tokyo Gas Co Ltd (TYO:9531) with a 34% interest, United Purpose Management Inc with 15% and Mizuho Leasing Co Ltd (TYO:8425) with 13%. Renova itself has the largest share at 38% and the right to buy the stake held by Mizuho Leasing on or after the date of completion of the facility.
The plant will use wood pellets and palm kernel shells (PKS) as a fuel source. It is expected to have an annual power generation of about 530,000 MWh, enough to meet the annual consumption of approximately 170,000 households.
Full construction is scheduled to commence in November 2020, with commissioning planned for May 2023.