Business
trend:
Sumitomo Forestry decided to participate in the biomass generation business and
construct a biomass generation plant toward 2016 with an investment about 14
billion yen. The plant has a generation capacity of 50,000 kW, exceeding the
currently largest plant that has a capacity of 33,000 kW. All generated
electricity will be sold to Hokkaido Electric Power. The company reckons that about
200,000 tons of wood and thinned wood will be available annually for generation
in the company-owned forest where the plant is to be constructed. The company
expects sales of several billon yen per year. It has company-owned forests across
the country with a combined area of 42,000 ha, and the area it owns is the fourth
largest in Japan, following Oji Paper whose forests total more than 100,000 ha,
Nippon Paper, and Mitsui and Co.
Fuel
cost accounts for 60% in biomass generation. Procuring fuel at a low price is a
critical factor for the success of biomass generation. Sumitomo Forestry plans
to import sucked orange of palm oil from Indonesia and Malaysia when the plant
is in short of fuel. At the same time, it plans to use coal for 25% of all fuel.
Even if coal is used for 25%, the carbon dioxide emissions can be reduced by
75%, the company reckons. In Japan, photovoltaic generation has a capacity of
about 6,700,000 kW, wind generation 2,500,000 kW, and biomass generation 2,100,000
kW. However, photovoltaic generation is increasing its share lately because its
sells for 4 yen higher per hour than biomass generation. Actually, photovoltaic
generation has a capacity of 1,330,000 kW out of 1,400,000 kW that started
operation between April 2012 and January 2013. It has become necessary to
develop the diversification of renewable energy because photovoltaic generation
greatly depends on weather.
A biomass generation plant
