Loan for Waste Treatment and Biogas Production and Sales Business Conducted by U.S. Indirect Subsidiary of Kanadevia Corporation
Supporting Overseas Business Expansion of Japanese Company under GREEN Operations

• Region: North America
• Infrastructures
• Environment
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to approximately USD44 million (JBIC portion) with Dem-Con HZI BioEnergy, LLC (Dem-Con HZI BioEnergy), a U.S.-based indirect subsidiary of Kanadevia Corporation (Kanadevia), under JBIC’s GREEN operations^*1. The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to approximately USD74 million.
     
2. This loan is intended to provide financing for Dem-Con HZI BioEnergy to construct a methane fermentation-based waste treatment plant (annual waste treatment capacity of 75,000 tons and annual biogas production capacity of 5,400,000 Nm³) in Minnesota, United States, and to generate energy from waste, as well as produce and sell biogas over a period of 20 years.
     
3. Kanadevia is a leading company that boasts a world-class track record in the number of EPC (engineering, procurement, and construction) orders for waste treatment plants. In recent years, renewable natural gas generated from the collection and utilization of organic waste has been gaining attention as a decarbonization energy source that can leverage existing gas infrastructure. The U.S. market has significant potential for the utilization of organic waste for energy production and is expected to expand over the medium to long term, supported by policy initiatives led by state governments.
     
4. The loan provides financial support for this overseas infrastructure project, in which the Kanadevia Group is engaged in long-term operation and management, leveraging its advanced technologies. The loan thereby contributes toward maintaining and strengthening the international competitiveness of Japanese industry. In addition, the biogas sold by Dem-Con HZI BioEnergy is utilized by local energy companies in the state of Minnesota. As such, this loan supports global environmental conservation.
     
5. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   See Announcement on July 2, 2018.