October 28th 2016
Green Finance Organisation（Japan)
Investment in Woody Biomass Gasification and Power Generation Project
Kushima-city, Miyazaki Prefecture
The Green Finance Organisation (Japan) (CEO: Takejiro Sueyoshi; hereafter “GFO”) is pleased to announce its decision to invest 390 million yen in woody biomass gasification and power generation project developed by Koyo Electric Co., Ltd.(Location: Kobe City, Hyogo Prefecture; CEO: Masahiro Inui). This is the collaboration between Koyo Electric Co., Ltd. and local businesses in Kushima-city, Miyazaki Prefecture for small-scale combined heat and power (< 2,000 kW power generation), making practical use of unused biomass resources, principally thinned woods, left in the forest areas.
Compared to large-scale woody biomass power generation systems (5,000kW and above), commercialization of such a small-scale woody biomass generation business has been limited in Japan, due to small economy of scale. For this project, the residual heat from the power generation and also the heat created during timber production processing are used for 1) binary power generation and 2) drying process as part of the wood pellet production (Wood pellets are used as fuel for the power generation).In addition, woody biomass gasification process is expected to contribute to efficient and stable business operation.
GFO’s decision to invest was based on the following considerations: the participation of GFO will encourage other financial institutions to provide financing for this project; the project will help promote business creation of similar small-scale woody biomass power generation in Japan; and it is expected to bring about regional revitalization through construction work in collaboration with local businesses and the creation of new jobs.