Announcement of Conclusion of Co-Financing Agreement with Japan Bank for International Cooperation and Sumitomo Mitsui Banking Corporation Regarding Biomass Fuel Production & Sales Business in Vietnam
October 12th, 2023
Announcement of Conclusion of Co-Financing Agreement with Japan Bank for International
Cooperation and Sumitomo Mitsui Banking Corporation Regarding Biomass Fuel
Production & Sales Business in Vietnam
-Contributing to Securing a Long-Term Stable Supply of Biomass Fuel with a View
to Realizing a De-Carbonized Society-
erex Co., Ltd. (Head Office: Chuo-Ward, Tokyo, Representative Director & President: Hitoshi Honna, hereinafter referred to as the “Company”) is pleased to announce that the Company has entered into an agreement with Japan Bank for International Cooperation (Head Office: Chiyoda-Ward, Tokyo, JBIC, Governor: Nobumitsu Hayashi) and Sumitomo Mitsui Banking Corporation (Head Office: Chiyoda-Ward, Tokyo, President and CEO, Representative Director, Akihiro Fukutome) for the biomass fuel production and sales business (hereinafter referred to as the “Project”) to be implemented through EREX SAKURA BIOMASS TUYEN QUANG CO., LTD (hereinafter referred to as “erex TQ”) and EREX SAKURA BIOMASS YEN BAI CO., LTD (hereinafter referred to as “erex YB”) respectively, as follows.
The loans will be co-financed by Japan Bank for International Cooperation and Sumitomo Mitsui Banking Corporation.
In addition, the loans will be used to raise the funds necessary for the Company to invest in erex TQ and erex YB when implementing the Project in Yen Bai Province and Tuyen Quang Province in Vietnam.
Note
From the perspective of developing and introducing renewable energy, the Project aims to process unused wood residue, etc. into wood pellets and sell them prior to the construction of new biomass power plants in Vietnam (PDP8 approved projects). The Project will proceed with the construction of wood pellet factories in Yen Bai Province and Tuyen Quang Province, Vietnam.
The Company will purchase all of the wood pellets produced at the erex TQ and erex YB wood pellet factories, half of which will be used for power generation in Japan.
Vietnam is a country that is actively moving towards building a carbon-neutral society by 2050. The Project will utilize unused biomass resources such as abundant wood residue in Vietnam, process them into wood pellets, and construct biomass power plants, thereby contributing to the achievement of the country’s CO2 reduction target, increase in income, creation of jobs and revitalization of the economy.
The Company, with its mission to “open up the future with new ideas and actions”, and its 2030 vision to “become a pioneer in the new era of electric power with renewable energy at its core, is promoting renewable energy business in Japan and overseas.
Through the Project, the Company will conduct biomass business with the aim of stabilizing power supply, contributing to the achievement of CO2 reduction targets, and improving energy self-sufficiency in Vietnam.