Sunday, October 20, 2013

First Nippon Paper, now Oji Paper to enter retail electricity sale business

We recently noted Nippon Paper's plans to sell electricity at the retail level.  Now Oji Holdings, a competitor, has announced similar plans.  These companies each have generation for self-consumption, and they may have excess capacity available as the paper industry has reduced production and consolidated.  Plus, they have access to feedstock for biomass, given their relationship with the wood products suppliers and the waste material from their paper businesses.

In addition to its current facilities, Oji Holdings plans a 30 billion yen ($300 million) investment in new hydro and biomass generation in 4 locations.  

It forecasts annual sales to third parties of 1.1 billion kWh, which would place it 4th among competitive electricity suppliers after NTT/Tokyo Gas-backed Enet, F-Power, and JX Nikko Nisseki Energy.

Nippon Paper, on the other hand, is building a new gas-fired plant, in addition to numerous existing power facilities.  JX Nikko Nisseki is planning a new generating facility which can utilize as fuel various waste products from a refinery.  Tokyo Gas also is planning to increase its electric generating capacity in anticipation of liberalized retail competition.
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  1. UnknownJanuary 28, 2014 at 5:22 PM

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