Hiroshima Gas began construction of its first wholly-owned biomass power plant on March 28, 2025.
According to a same-day statement, the 1.99MW Onoura Biomass Power Plant in Hatsukaichi City, Hiroshima Prefecture, is expected to be commissioned in July 2026. It will be operated under the feed-in-premium (FIP) scheme, which allows asset owners to monetize their generation in the wholesale and balancing markets and through PPAs on top of a variable, wholesale market price-dependent premium.
Hiroshima Gas expects the power plant to generate about 13.8GWh annually, using primarily domestic thinned wood. It plans to transfer the asset to a yet-to-be incorporated special purpose company at a later date.
Takuma has been in charge of engineering, procurement, and construction (EPC). It plans to hand over the project, which is its first contract for a FIP biomass power plant, at the end of June 2026.
Separately from the Onoura project, Hiroshima Gas also owns a 50% stake in the 112MW Kaita Biomass Power Plant, an approximately 80% biomass, 20% coal co-firing facility in Kaita Town, Hiroshima Prefecture, through a joint venture with Chugoku Electric Power.
