OREANDA-NEWS. Mitsui & Co., Ltd., Iwakura Corporation, Sumitomo Forestry Co., Ltd., and Hokkaido Gas Co., Ltd. have today signed a shareholder agreement providing for joint investment in the establishment of Tomakomai Biomass Power Generation Co., Ltd. ("the new company") in Tomakomai City, Hokkaido. The new company will operate a wood biomass power generation business ("the business").

The new company will build generation facilities with a capacity of approximately 5.8MW in the Harumi-cho district of Tomakomai City in order to produce electricity for sale at a fixed price under the Feed-in Tariff Scheme for Renewable Energy. Construction will begin in May 2015, and the facility is expected to be in operation by December 2016.

The facility will be fueled by wood chips produced entirely from unused timber from forests in Hokkaido. Following the start of operations, the new business is expected to generate additional demand for approximately 60,000 tons of timber annually. The business will have wide-ranging social significance. In particular, it will encourage the maintenance of forest environments while stimulating the development of forestry in Hokkaido and contributing to job creation and regional revitalization.

Mitsui owns approximately 44,000 hectares of forests throughout Japan. For many years it has carefully conserved these forests as assets that contribute to the public good and bring benefits to the whole of society. Around 80% of Mitsui's forests, with an area of about 35,000 hectares, are located in Hokkaido.

Following the start-up of the business, the new company will be supplied with previously unused timber from these forests.

Through its Hokkaido Office, Mitsui works closely with local communities and has expanded its networks with businesses and local government organizations within Hokkaido. Mitsui will continue to use its experience in the use of wood biomass in electric power generation to develop new energy projects that will contribute to the reliable supply of energy.