KAB Takuma GmbH (hereinafter referred to as KAB) - a subsidiary of Takuma Co., Ltd. - has received an order for a biomass power plant, which is to be run on woody biomass created by thinned wood, from Stadwerke Leipzig GmbH (hereinafter referred to as SWL), working with Austrian Energy & Environment AG (hereinafter referred as AE&E) in a consortium. The order volume for this project is approximately 57 million EUR and KAB is to provide the steam turbine facility as well as the plumbing equipment, while the boiler and combustion system are to be provided by AE&E.
SWL is established by the City of Leipzig, which holds a 100% investment. The major business operations of the company are utility services, including electric power supply, etc. and this biomass power plant was constructed in order to supply electric power as well as provide steam to neighboring plants. The annual power generation by the plant is approximately 157,000 MW, which is equivalent to the annual electric power consumption of 60,000 family units in the neighborhood. The supply of fuel for the plant - woody biomass from thinned wood - is supposed to be stably ensured by setting up long-term contracts with state-run as well as private forestry offices.
In Europe, each country is proactively promoting the construction of EfW (Energy from Waste) plants and biomass power plants based on the EU directive, as one of countermeasures for greenhouse gas reduction. Therefore, Takuma is positioning Europe as an important market, due to the high potential for increased demand for such plants in future, and aiming to boost this area, one of our key group business operations, by expanding such operations within the European market.
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