Equis Development blocks debt for 50 MW biomass project in Japan
Aug 26 (Renewables Now) – Asia-focused renewable energy company Equis Development Pte Ltd (EDL) today announced that it has secured $ 282 million (€ 240.3 million) in syndicated debt for a 50 MW biomass project in Niigata Prefecture, Japan.
The Singapore-based renewable energy and waste management infrastructure developer has issued a lawsuit notice, giving the start of engineering, procurement and construction (EPC) work. On-site construction of the Niigata East Port biomass project is scheduled to begin in May 2022, with the plant expected to become operational in October 2024.
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 program through a joint venture with Japanese company Tohoku Electric Power Co Inc, which has a 20% stake and will act as the engineer to the owner and operator of the plant. The output from the facility will be sold to an electric utility unit under a 20-year Fixed Price Power Purchase Agreement (PPA) as part of the Feed-in Tariff Program (FiT ) from the country. The electricity produced will be sufficient to power around 117,000 homes per year.
Niigata East Port is EDL’s third biomass project in Japan, where it is also developing another – the 50 MW Tomatoh Biomass Project in Hokkaido. The company is committed to investing more than $ 2 billion in renewable energy infrastructure and waste management initiatives in Australia, Japan and South Korea over the next two years.
(USD 1.0 = EUR 0.852)