H.I.S. to Build Biomass Power Plant in Miyagi
H.I.S. is building a palm oil-based biomass power generation plant in Kakuda City, Miyagi, to operate with effect from July 2019, announced the company, April 16.
The power plant costs 9 billion yen to build and is capable of generating 41,100 kilowatts channeled through power suppliers based on the feed-in tariff system. The company's subsidiary H.I.S. Super Electric Power, built in March to take part in renewable energy generation business, will build and operate the plant.
According to H.I.S., the new plant is estimated to generate 350 thousand megawatts per hour - enough to supply 50 to 100 thousand households. Palm oil is to be imported from Malaysia.
H.I.S. already has a small geothermal energy power generator and the new plant is another step to ensure stable power supply. H.I.S. Chairman Hideo Sawada, concurrently president, has always stressed the need for his company's own source of stable power supply. Part of the power generated at Miyagi will hopefully provide a source of stable power supply, contemplates H.I.S.
H.I.S. Supper Electric Power is capitalized at 50 million yen - 66% by H.I.S. and 34% by its subsidiary Huis Ten Bosch at Nagasaki.
H.I.S. entered power supply business via its subsidiary HTB Energy Co. with the liberalization of the electricity market in April 2016.
The company touches on the power supply itself for the first time in line with the government's prognosis to ensure the ratio of renewable energy supply at 24% in 2030.
H.I.S. estimates a gross power generation of 350 thousand megawatts per hour to sell via the feed-in tariff system to Tohoku Electric Power Co. Inc. at 24 yen for 1kwh.
The deal should earn H.I.S. a revenue of 8.4 billion per annum - an amount roughly a year of operation should pay off. (Nathan Shiga)