Veolia secures biomass contracts in Japan

Andrew Macklin
November 04, 2015
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November 4, 2015 - Veolia has just won two contracts to operate two biomass power plants in northern Japan in partnership with Takeei, a major local environmental services company. These two contracts, both signed for 20 years, represent total cumulative revenue of EUR 90 million for Veolia.

The two facilities, located respectively in Hirakawa and Hanamaki cities in the Tohoku region, will produce 100 GWh of electricity per year, that is, the equivalent consumption of 22,000 households. These two contracts are based on the circular and local use of resources: the wood used to fire the boilers comes from neighboring forestry industries, thanks to Takeei’s local knowledge and network. Veolia brings its know-how in biomass operation and will manage the overall operations, including 40 employees that will work permanently at the two facilities. Operations will start in Hirakawa in November 2015 and in Hanamaki in December 2016.

With these two operations, Veolia and Takeei are helping to increase the production of renewable energy on Honshu Island and to diversify the country's energy sources and mix. In all, the facilities will make it possible to avoid the emission of more than 40,000 metric tons of CO2.

Régis Calmels, senior executive vice president Asia for Veolia explains, “It was Veolia’s expertise and ability to adapt to the Japanese customs that enabled us to win the two contracts. These first energy services contracts are confirmation of Veolia’s growth in this field in Asia. Japan wants to triple the share of renewable energies in its energy mix by 2030, and that is opening up significant prospects for the Company, in particular in the area of biomass power plant operation.”

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