Joint ventures have been formed in Japan with the purpose of developing advanced coal-fired power plants.
The prefecture of Fukushima will host the plants after two joint ventures, Nakoso IGCC Power GK and Hirono IGCC Power GK, were formed to deliver the project.
The joint ventures have been set up by Mitsubishi Corporation Power, a subsidiary of Mitsubishi Corporation, along with Mitsubishi Heavy Industries, Mitsubishi Electric Corporation, Tokyo Electric Power Company Holdings and Joban Joint Power.
The five companies will finance a portion of the project, which is expected to cost more than $2.8bn.
The remaining part of the project’s cost will be met through a number of domestic financial institutions, including The Bank of Tokyo-Mitsubishi UFJ, Development Bank of Japan, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Fukushima’s The Toho Bank.
A joint statement from the companies said: “In terms of project financing, this is considered to be one of the largest ever of this scale domestically.
“All the contributors have signed on to providing financing within the context of their support for recovery in Tohoku following the Great East Japan Earthquake and Tsunami of 2011.”
The new companies will each set up and operate a 540MW plant.
Energy Business Review reports that one plant will be located next Joban Joint Power’s Nakoso Power Station in Iwaki City, the other will come up at the site of TEPCO Fuel & Power’s Hirono Thermal Power Station in the Futaba District.
The new facilities will feature next generation clean coal technology based on the Integrated coal gasification combined cycle.
Both plants are expected to be operational by 2021.