Toshiba Energy Systems & Solutions Corp has signed a collaboration agreement with Japan’s Omuta City for the construction of a 44-MW biomass plant.

Through its subsidiary Sigma Power Ariake Corp, the unit of Toshiba Corp (TYO:6502) will this autumn start building two 22-MW facilities at Shinkomachi and Nishiminatomachi in the city of Omuta, Fukuoka prefecture. It said in a press release on Monday that the two units are planned to become operational in the spring of 2022. The project involves an investment of around JPY 20 billion (USD 176.1m/EUR 155.4m).

On announcing plans for the scheme, Toshiba said it is working to increase the penetration of its renewable business in the market. The Japanese conglomerate wants to build its integrated aggregator service business and to provide stability in the energy system by optimising multiple energy sources, such as renewable energy and battery storage, relying on control technology like in a virtual power plant. Growing into renewables is one of the key points in the group’s five-year transformation plan, unveiled last year.

At present, Toshiba has an 80-MW portfolio that includes six solar parks, three wind farms, one hydropower plant and a power station that was retrofitted to switch from coal to burning biomass in 2017.