Baker & McKenzie (Gaikokuho Joint Enterprise) recently advised Ishikari Bioenergy LLC in connection with its involvement in a biomass power generation joint venture in Ishikari City, Hokkaido, Japan. Ishikari Bioenergy LLC itself was founded by Okumura Corporation (investment ratio of 50%), Kyuden Mirai Energy Company, Inc. (30%) and New Circle Energy Co., Ltd (20%). New Circle Energy Co., Ltd was established by Marunouchi Infrastructure Inc. and Shin Energy Development Co.,Ltd.
On 5 February of this year, Ishikari Bioenergy LLC concluded a loan agreement with a group of financial institutions, including Sumitomo Mitsui Banking Corporation (lead arranger), Resona Bank (co-arranger) and Kansai Mirai Bank. Baker & McKenzie provided legal advice to Ishikari Bioenergy LLC on the arrangement of project finance.
Ishikari Bioenergy LLC plans to develop a biomass mono-fuel power generation project in the Ishikari Bay New Port Industrial Park in Ishikari City. The planned 51.5MW power plant, with an annual output of 360 millon kWh, will have the capacity to supply approximately 121,000 ordinary households with electricity. This low environmental impact biomass power generation facility will utilize wood pellets and PKS, and is expected to help realize a low-carbon society, create new jobs and revitalize local industries. It is scheduled to come online in August 2022.
The project was led by Nick Eguchi, partner and co-chair of the Renewable Energy Group at the Baker McKenzie Tokyo Office. Kosuke Suzuki, partner, and associates Naoki Ishikawa, Moe Maekawa and Ryota Hiyamizu were also involved in the project.
Regarding this project, Nick said, "We are very pleased to have been involved in a very important project aimed at making Japan a more sustainable society. Going forward, we will continue to strive to contribute from a legal standpoint to Ishikari City's efforts to source 100% of its power supply from renewable energy."