Erex, ENEOS Scrap Planned 300MW Niigata Biomass Project, MoE Data Suggest
Date: November 18, 2025
Erex will terminate the environmental impact assessment (EIA) for a 300MW biomass project jointly developed with ENEOS in Seiro Town, Niigata, on November 26, 2025, according to the Japanese Ministry of the Environment’s database.
The project, first announced in November 2020, was planned on a site owned by ENEOS, previously used as a golf course. The plant was expected to generate approximately 2 TWh annually, primarily using sorghum fuel imported from Vietnam and the Philippines, and would operate outside the feed-in-tariff (FIT) scheme.
Originally, construction was scheduled to begin in 2023 with commissioning in FY2026, but delays in the environmental impact assessment pushed groundbreaking to FY2026 and commercial operation to FY2029.
The cancellation is attributed to rising construction costs and a weak yen, which significantly increases operating expenses for projects dependent on imported fuel. The yen has depreciated over 40% against the US dollar since the project was first announced—from roughly ¥105/USD to ¥150/USD.
Erex currently holds a 493MW biomass portfolio, including six operational power plants ranging from 49MW to 149MW, and a 20MW asset in Shikoku under long-term shutdown.
