In the announcement on October 31, Enviva announced that the acquisition contract with Mitsubishi has now taken effect. On the previous day, Mitsubishi released a news that Japan is building a biomass power plant.
Enviva said in a statement that the previously announced terms of the contract for the supply of 630,000 metric tons of wood pellets per year to Japanese customers have been met and the agreement is now in force. According to the terms of the agreement with Mitsubishi, Enviva said it will become Aioi Bioenergy Corp.'s exclusive long-term import of biomass fuel suppliers. Aioi Bioenergy is a joint venture between Mitsubishi Corp. and Kansai Electric Power Co.
According to Enviva, the contractual delivery schedule begins at the end of 2022 and lasts for at least 15 years.
John Keppler, Chairman and CEO of Enviva, said: 'Our partners Aioi Bioenergy and Mitsubishi are pioneers in reducing the impact of climate change in Japan. We are proud to be the only sustainable pellet fuel supplier at the Aioi plant. One of Japan's largest biomass projects announced to date. We look forward to helping Mitsubishi and Kansai Electric to achieve renewable energy commitments.'
On October 30, Mitsubishi Corp. announced that its wholly-owned subsidiary, Mitsubishi Corp. Power Ltd., has begun construction of a biomass power plant in western Japan, which is passing Aioi Bioenergy. Implementation project.
Mitsubishi said in a statement that Aioi BioEnergy has reached an agreement with the lending institution to obtain a loan through a non-recourse project financing plan that enables Aioi BioEnergy to start plant design and equipment procurement.
The project will transform Unit 2 of the Aioi Power Plant in Hyogo Prefecture from heavy oil or crude oil to wood pellets. Mitsubishi said that the unit will be out of service from April 1, 2018, but will be put into operation once the conversion process is completed. The device is currently expected to start using biomass fuel for power generation in January 2023 for 20 years.