Kyuden Mirai Energy to join wood pellet fuel project in Laos
BANGKOK, NNA - Kyuden Mirai Energy Co., a wholly owned renewable energy subsidiary of Kyushu Electric Power Co., has unveiled a plan to engage in a wood pellet fuel production project in Laos for biomass-fired power generation in Japan.
Kyuden Mirai Energy will take part in the project undertaken by Siphandone Ratch-Lao Co. by acquiring a 20 percent stake in the Thai-Laotian venture from Buriram Green Energy Co., a subsidiary of major Thai sugar miller Buriram Sugar Plc, later this year.
Buriram Green Energy will remain the largest shareholder of the joint venture, set up in September last year, after the purchase with a 45 percent stake. Ratch-Lao Services Co., a Laotian subsidiary of Thai electric power firm Ratch Group Plc, will own 25 percent and Siphandone Bolaven Development Co. of Laos 10 percent.
With Kyuden Mirai Energy's investment, the joint venture plans to build a new wood pellet fuel plant with an annual production capacity of 100,000 tons in Champasak Province, southern Laos. The plant is expected to start operations in the first half of next year.
Kyuden Mirai Energy is the first among Japan's utilities or their affiliates to engage in the entire process of afforestation, production and sale of wood pellets, the company said, adding it also marks its first full-scale investment in an overseas project.
Kyuden Mirai Energy added it received support from the Development Bank of Japan and Japan Economic Research Institute in the decision-making process regarding the investment. (NNA/Kyodo)