Loan for Waste Treatment and Power Generation Project by a U.S. subsidiary of Hitachi Zosen Corporation
JBIC's First Ever Support for Waste Treatment Project
- Region: North America
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on March 23 a loan agreement totaling up to USD6.1 million (JBIC portion) with Kompogas SLO LLC (Kompogas SLO), a U.S. subsidiary of Hitachi Zosen Corporation (Hitachi Zosen) Group. The loan is cofinanced with a private financial institution, bringing the total cofinancing amount up to USD12.4 million.
This loan is intended to finance the necessary funds for Kompogas SLO to construct a waste treatment and power generation plant (waste treatment capacity of 30,000ton/year; power output of 730kW) in San Luis Obispo, California in the U.S., and to conduct waste treatment, biogas power generation, and sales of compost*1
over a period of 20 years. This is the first loan for JBIC to provide to a waste treatment business.
Hitachi Zosen is a leading company which boasts a world-class track record in the number of EPC (engineering, procurement, and construction) orders for waste treatment and power generation plants. This project is an overseas infrastructure business in which Hitachi Zosen Group invests in the field of waste treatment and power generation for the first time in the U.S., and is involved in long-term operation and management of the plant using its advanced technologies. It is thus positioned as an important milestone in further developing the company's overseas business. This loan will support such overseas business expansion of Hitachi Zosen Group, and at the same time contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support Japanese companies' overseas infrastructure business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 Compost is a fertilizer made by fermenting organic matter, such as food waste.