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Environment

Japan to host one of world's largest biomass power plants

ERex says $800m facility can rival coal on cost

An eRex biomass power plant in Japan's Oita Prefecture. The company aims to meet growing demand for stable sources of renewable energy.

TOKYO -- Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins and a means of skipping the government's feed-in tariff program.

The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner.

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