Japan's Renewable Power Incentives Help to Launch Biomass Projects

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The Japanese government introduced a program of incentives in July, as part of a raft of measures to encourage companies to produce renewable-sourced power. The incentives appear to be working, as new entrants into the sector with new projects have reacted with biomass-fed projects.

Japan's largest biomass-fed power plant will be built with an investment of $164 million by the major oil wholesaler Showa Shell Sekiyu (OTC:SWSKF) (Tokyo). The 49-megawatt (MW) power plant will be built in Kawasaki near Tokyo.

Three large-scale, biomass-fed power plants are planned by paper mill owner Oji Holdings (TYO:3861). The fuel feed will come from the "thinning" process, in which plants are removed to promote the growth of forests and plantations.

Biomass power is seen a part of the program to create new energy sources to replace nuclear power sources that were shut down in the aftermath of the 2011 Fukushima disaster.

For related information, see August 16, 2013, article - Looming Maintenance Means 'Zero Nuclear for Japan, but Does Zero Nuclear Mean More Gas?

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