Sumitomo Corporation has announced about their plans of a new 50 MW biomass-fired plant to be constructed in Sakata City. The project is planned to be completed by May 2018 and is expected to be the largest electricity source in the region.
It was in 2011, when the Great Japan East Earthquake took place. It had 9.0 point magnitude, and thus was one of the biggest and costliest disasters in the history of mankind and resulted in large-scale loses and Fukushima nuclear accident. After this bitter experience Japanese government started a program of energy sector reforming in the country.
The Policy on Electricity Reform was adopted on April 2, 2013 and it is aimed at reconsidering of the existing energy system, so that to assure a stable and affordable energy supplies. The Reform consists of three main objectives: to provide stable supplies, to decrease electricity rates as much as possible and to extend the energy choices for consumers. In order to fulfil these goals, a step by step plan of actions was developed, which encourages competition on the retail energy market. It contributes to the development of Japan's energy market and attracts investments to the field.
In addition, the nuclear power issue has been a sore question since the Fukushima disaster in Japan. After the accident, many public protests calling for nuclear power restriction took place, after which the 30% nuclear energy share in total consumption was considerably reduced. In 2012 the new Nuclear Regulation Authority (NRA) announced that the nuclear power stations are to be scrutinized concerning their compliance to the new stringent requirements. Depending on the results of the reviews, the nuclear power stations may be allowed to restart operations or may be retired. Despite the fact, that nuclear power remain an energy source of great importance for the country, the renewable energy facilities are currently welcomed to be constructed as substitutes for nuclear power stations.
Currently, due to the facilitated situation on the Japan's retail electricity market; many companies are eager to become power purchasers and suppliers here.
Sumitomo Corporation has a wide network of power facilities in the country and presently aims to extend it. On 1 October, 2015 the company announced about their plans to construct a 50 MW biomass-fueled power plant in Sakata City, Yamagata Prefecture. The project is to be fulfilled through the wholly owned subsidiary of Sumitomo, Summit Energy Corporation.
The Sakata biomass power plant will be placed in the Sakata Rinkai Industrial Park, which is situated near the Port of Sakata. The enterprise is planned to be operated by Summit Sakata Power, Summit Energy's property, established in 2012. The total cost of the project is 25 billion yen or $208 million. The construction is scheduled to start in June 2016. The project is awaited to be completed within 2 years, so that to be put into commercial operation by May 2018.
The Sakata biomass plant isn't the first experience of renewable energy facilities building for Summit Energy in Japan. Summit Energy Corporation already owns and operates two biomass power plants in Japan. The Itoigawa Biomass Power Plant has a capacity of 50MW and has been operating since 2005. And the second facility is Handa Biomass Power Plant of 75 MW capacity and is scheduled to start commercial operation by June 2017.
Owning three large-scale biomass power plants with total capacity of 175MW, Summit Energy Corporation is going to be one of the largest biomass plant owners and operators in Japan, according to Sumitomo.
The Sakata biomass power plant is one of the biggest in the Tohoku region. In order to ensure effective biomass supplies of the sufficient volumes the Sumitomo Corp. represented their plan for supplies. Sumitomo's Corporation Materials will be in charge of the best part of biomass for the Sakata power plant They are well acquainted with needs of Japanese market and have an ample experience in importing of wood chips, pellets and other renewable fuels. Fuels are planned to be provided both from the local sources, such as unused wood waste and wood timber from around Yamagata Prefecture, and also from the overseas resources. In this context the allocation of the Sakata power plant appears to be quite favorable, as Yamagata Prefecture possesses abundant forest resources, and the availability of the Port of Sakata will make the transportation logistics much easier.
Nuclear Regulation Authority (NRA) is an administrative body of the Cabinet of Japan, established in 2012. It was formed from the Nuclear Safety Commission with an aim to ensure nuclear safety in Japan, it functions as a part of the Ministry of the Environment.
Sumitomo Corporation is one of the largest trading companies in the world. It was founded in 1919 and has been a leading enterprise, carrying out a variety of business services, importing and exporting trades, domestic and international investments. Headquartered in Tokyo, Japan.
Summit Energy Corporation is a US company, engaged in oil and gas exploration and development and energy logistics. It was founded in 1998 and possesses properties in Louisiana, Texas, and Oklahoma. It operates as a full subsidiary of Sumitomo Corporation.
