Chubu and domestic material supplier Inabata agreed to finance Furusato FIC Energy, the developer of the power plant, on 27 June. Chubu did not disclose the investment amount or its share in the project.
The power plant will consume 31,000 t/yr of wood chips made from locally-sourced unused wood materials to generate 14.5 GWh/yr of electricity. All power will be sold to power grid company Tohoku Electric Power Network under the country's feed-in-tariff scheme at ¥40/kWh ($0.28/kWh).
Chubu aims to begin construction by April 2025.
Chubu has attempted to expand its biomass power capacity for its carbon neutral target by 2050, which is in line with the country's decarbonisation goal. The power utility also invested in renewable power developer Japan Forest Energy's 7MW Enshu biomass-fired power plant in central prefecture Shizuoka.
Chubu's joint venture's 54.5MW Yonago biomass power plant in southern prefecture Tottori was hit by a fire and halted operations on 17 May, but restarted on 1 June.
