A joint venture, Nippon Paper Ishinomaki Energy Center, will be established by the two Japanese companies to construct and operate the facility to be located on a site owned by Nippon Paper’s Ishinomaki mill.
Nippon Paper will provide 70% of the investment, while the remaining will come from Mitsubishi.
Scheduled to commence operations in March 2018, the power plant will generate electricity using 30% woody biomass and the remaining coal.
Nippon Paper Industries will be responsible for the operation and maintenance of the facility.
Power generated from the facility will be sold to an unidentified power producer and supplier.
Nippon Paper is planning to transform its current business structure into a comprehensive global biomass business.
The company aims to strengthen its energy business on the locational advantages of its mills, as well as on its capabilities to procure fuel and woody biomass both in Japan and abroad.
Image: Nippon Paper Industries Ishinomaki Mill and Hibarino site. Photo: courtesy of Mitsubishi Corporation.
