Nippon converts to biomass.

NIPPON CONVERTS TO BIOMASS. Nippon Paper. Tokyo, Japan said two of its mills will convert power generation system operations from oil to biomass fuel. The conversion will be completed at the Fuji mill (30,000 KW) by October 2007 and at Iwakuni mill (35,000 KW) by February 2008, reducing annual emission of C[O.sub.2] by 480,000 metric tons. Combined total investment is Yen 15.4 billion (US$ 138 million). Annual biomass fuel usage of 260,000 metric tons of waste wood and 70,000 metric tons refused plastic fuel (RPF) will reduce oil consumption by 190,000 [m.sup.3]. The company projects annual cost savings to be approximately Yen 5.2 billion (US$ 47 million). Nippon intends to eliminate the use of oil for power generation in future.

With recent price jumps in oil, more Japanese mills are finding it efficient to make the switch to biomass fuel. Current projects include:

* Tokai Pulp. Tokyo will invest Yen 5 billion (US$ 45.8 million) for a new biomass boiler at Shimada mill in Shizuoka. It plans to sell surplus power by June 2006. The mill collects waste plastics from industries in the same region to be used as biomass fuel, and the generated power meets the mill's power requirement. Excess power sales may generate annual sales up to Yen 500 million (US$ 4.6 million).

* Hokuetsu Paper, Tokyo has made similar plans for its Katsuta mill in Ibaraki. With a Yen 7.6 billion (US$ 79 million) investment, a new biomass boiler, to be completed in June 2006, will provide for the mill's power requirements. The other half of the generated power will be sold to a power company, generating Yen 1 billion (US$ 9.2 million)/yr.

* Daio Paper, Shikoku-Chuo and Oji Paper, Tokyo has been selling power for sometime.