Contributing to the Reduction of Greenhouse Gases Through the Renewable Energy Business

Transitioning to Renewable Power Generation and Basic Policy

The Sumitomo Forestry Group is advancing renewable power generation by establishing solar power generation systems at model homes as a prerequisite for power use at companies in addition to its wood biomass power generation and solar power generation businesses. In fiscal 2017, the combined output of power generation that resulted from all of these efforts was 387,210,000 kWh. The objective is to build a power generation system with a capacity of 200 MW primarily generating power from wood biomass.

Shift in Renewable Power Generation*1

Shift in Renewable Power Generation

*1 Results are only for solar power generation in fiscal 2015

*2 The amount of electricity generated from wood biomass power generation covers only consolidated subsidiaries and includes the use of coal as an auxiliary fuel to ensure smooth operation and maintenance

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Wood Biomass Power Generation Business

The Sumitomo Forestry Group operates wood biomass power generation facilities that are fueled by recycled chips primarily using leftover from construction as raw materials, wood not suitable as a building material, and thinning leftover in forests.

The CO2 emitted by burning wood does not contribute to CO2 in the atmosphere as part of the life cycle of the timber because the CO2 in the atmosphere is absorbed through photosynthesis as the trees grow (concept of carbon neutrality). Therefore, the Group has been engaged in wood biomass power generation as a type of business that contributes greatly to the advancement of forestry, such as the effective use of wood, reductions in CO2 emissions and the maintenance of local forest environments.

In February 2011, the Sumitomo Forestry Group entered this sector with the operation of the urban-oriented Kawasaki Biomass Power Generation Plant (generation capacity: 33 MW), which primarily uses scrap construction wood as fuel. Thereafter, full operations began at the Mombetsu Biomass Power Plant in December 2016 with a generation capacity of 50 MW, the Tomakomai Biomass Power Generation Plant in April 2017 with a generation capacity of 6.2 MW and the Hachinohe Biomass Power Generation Plant in April 2018 with a generation capacity of 12.4 MW. All of these plants generate power primarily from unused forest materials from Japan. Once the Kanda Biomass Power Generation Plant begins full operation in 2021, the Group will have a total power generation capacity of roughly 177 MW, which will supply electricity to approximately 387,000 households.

Drawing on its past experience in the wood biomass power generation business, the Group will continue to expand renewable energy business operations suited to local conditions and other requirements.

Mombetsu Biomass Power Plant

Mombetsu Biomass Power Plant

Hachinohe Biomass Power Generation Plant

Hachinohe Biomass Power Generation Plant

The Group’s Wood Biomass Power Generation Business

Business Location Power generation capacity Start of operations Main features
Kawasaki Biomass Power Generation Business
(Joint investment with Sumitomo Joint Electric Power Co., Ltd. and Fuluhashi EPO Corporation)
Kanagawa Prefecture
Kawasaki City
33MW February 2011
  • Largest biomass power generation facility in Japan that primarily burns scrap wood as fuel
  • Utilizes recycled chips produced by using construction debris and waste pallets from Tokyo and surrounding suburbs, as well as thinnings and pruned branches
  • Equipped with environmental mechanisms, such as flue gas desulfurization equipment, an exhaust gas denitrizer and a bag filter, the urban-oriented biomass power generation facility clears Kawasaki City’s strict environmental standards
Mombetsu Biomass Power Generation Business
(Joint investment with Sumitomo Joint Electric Power Co., Ltd.)
Hokkaido
Mombetsu City
50MW December 2016
  • Thinnings, wood left over from logging and unused wooden materials are primarily procured from within a 75km radius of the power plant and turned into chips at an adjacent plant before being used as fuel
  • Palm kernel shell, plus some coal is also partially used as an auxiliary fuel
Tomakomai Biomass Power Generation Business
(Joint investment with Mitsui & Co., Ltd., Iwakura Corporation and Hokkaido Gas Co., Ltd.)
Hokkaido
Tomakomai City
6.2MW April 2017
  • All of the fuels are from unused forest material in Hokkaido.
Hachinohe Biomass Power Generation Business
(Joint investment with Sumitomo Osaka Cement Co., Ltd. and East Japan Railway Company)
Aomori Prefecture
Hachinohe City
12.4MW April 2018
  • Unused forest materials from forestlands in the Sanpachi-Kamikita-Shimokita region of Aomori Prefecture, timber offcuts, and railway forest thinnings from the nearby railway lines will be used as the main source of fuel
  • Some palm kernel shell will be used
Kanda Biomass Power Generation Business
Joint capital venture between Renova, Inc., Kyuden Mirai Energy and Mihara Group K.K.
Fukuoka Prefecture
Miyako District
75MW June, 2021
  • Fuel uses thinnings and unused forest material from northern Kyushu in addition to American pellets and Indonesian palm kernel shell

Japan Bio Energy Co., Ltd. recognized as Superior Industrial Waste Disposal Operator

Japan Bioenergy Co., Ltd., which manufactures and sells wood biomass chips, was recognized as a superior industrial waste disposal operator in May 2016 by Kawasaki City.

The system to recognize businesses as superior industrial waste disposal operators evaluates and certifies excellent industrial waste disposal operators through the prefecture or city. In order to receive this recognition, the business must satisfy all of the standards that include legal compliance, business transparency, efforts in environmental friendliness, and a healthy financial strength. The validity of certification in industrial waste disposal is extended from five to seven years by receiving recognition through this system.

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Solar Power Generation Business

Sumitomo Forestry owns a solar power generation facility that generates 3,429 kW in Kashima City, Ibaraki Prefecture.

The Company gives consideration to mitigating the environmental impact of the power generation facility and expanding applications for the use of timber by installing some wooden mounting frames that are mainly made of domestically produced Japanese cedar.

Solar panels and environmentally friendly wooden frames

Solar panels and environmentally friendly wooden frames

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CSR