Sumitomo, Partners to Provide Loans for Japan Biomass Projects

Jun 30, 2014 11:47 pm ET

July 1 (Bloomberg) -- Sumitomo Mitsui Banking Corp. and partners will provide a 6.3 billion yen ($62 million) loan for a biomass plant developed by a unit of First Energy Service Co.

A loan agreement for the 18-megawatt woody-biomass plant in the southwestern prefecture of Oita was signed with a group of banks that included Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank, First Energy Service said in a statement yesterday.

Separately, Sumitomo and others will provide a 2.2 billion yen loan for a woody biomass plant in northern Japan being developed by a unit of Fujikoh Co.

Bank of Tokyo-Mitsubishi UFJ and two other banks will also join, Sumitomo and Fujikoh said in a statement yesterday.

Japan saw a spike in the number of applications for biomass projects in March. The trade ministry approved projects with a combined capacity of 691 megawatts in a one-month period, adding to the 874 megawatts of capacity that had been approved since the introduction of an incentive program in July 2012.