Japanese Startup ZE Energy Will Develop A Biomass Power Systems in Sri Lanka.
ZE Energy has recently announced that they shall be partnering up with Sri Lankan hydroelectric company to develop a wood-fueled power generation equipment in the South Asian country.
The Japanese startup had agreed during the late April in order to work with Sri Lanka’s Hydro Power International, which handles small-scale hydroelectric projects. The duo will begin to set up during the early month of June as a 50-50 joint venture in the city of Colombo capitalized to total around 20 million yen(US$194,000) to 30 million yen.
Sri Lankan staffers will be sent to Japan to learn about the necessary manufacturing technology. The venture will purchase currently out of use factories for the use as their productions bases. Production will being sometime as early as next year.
This will become ZE’s very first time of constructing a power generation equipment entirely overseas.
Steal Prices in South Asia tend to be somewhat similar to Japans, but labor is far less expensive. A 1,000kW plant created in Sri Lanka, which include buildings, will cost a total of roughly 450 million yen, half the cost of constructing in in Japan. This will likely make its cost-competitive with similar facilities European and U.S. rivals, which cost around 500 million yen to 600 million yen.
Power systems developed by the venture will be sold in Sri Lanka, India and Bangladesh. In Sri Lanka, wood will be utilized for these systems. With the other two countries, straw and husks will be utilized. ZE main goals are to install systems at around 100 sites within the next three years.
The Japanese company has also agreed to sell over five Japanese-built 1,000kW systems to Hydro Power International before construction goes underway, with each being priced for a total of 600 million yen.