Japan: Sumitomo Osaka Cement has announced plans to lift sales of power generated in-house at its Tochigi Prefecture plant using wood biomass fuel. The current fuel mix is 85% wood chips and 15% coal, 20% more wood chips than previously.
The group's operating profit is expected to surge by 41% to US$144m in the fiscal year ending March 2013. Sumitomo Osaka Cement does not disclose power-related earnings, but the steady advance of power sales is expected to become a factor that boosts operating profit by US$12.5-25m.
The power generation facilities at the Tochigi plant were completed in February 2009 and went into full operation in April 2009. Current output is 25,000kw.
Sumitomo Osaka Cement suspended operations at one of the plant's two kilns in January 2012 as part of restructuring measures, giving it capacity to supply more of its leftover power. It aims to contribute to the power supply by selling the excess electricity, especially with Japan's nuclear plants remaining offline due to the aftermath of the Fukashima radiation leak following the March 2011 earthquake and tsunami disaster.