Risks Associated with Stable Biomass Fuel Procurement and Changes to the Feed-in Tariff Scheme
First written in FY2016. 11 of 23 entries say "Restated". Latest entry: FY2026-H1.
No other company in this theme has enough history to compare yet.
- FY2026-H1RestatedAnnual report
「Although demand for biomass fuel continues to increase and fuel costs remain persistently high, operating income exceeded the year-earlier level because manufacturing expenses declined substantially.」
Although the increase in biomass fuel demand and persistently high fuel costs have continued, earnings in the power generation business improved due to lower manufacturing expenses. - FY2024WorsenedAnnual report
「If a new large-scale biomass power plant begins operating nearby or an unforeseen event such as a natural disaster occurs, the supply of wood biomass fuel from inside or outside the Group may be interrupted or reduced. In addition, if fuel prices surge due to shortages, the Group’s performance may be affected. Furthermore, if a power plant is shut down for an extended period due to a serious breakdown or other cause, electricity revenue may decline.」
In addition to the risks of fuel shortages and soaring prices, the Company explicitly identifies risks arising from the operation of nearby power plants and serious breakdowns or extended shutdowns of its own power plants, broadening the scope of the risks identified. - FY2024-Q3WorsenedAnnual report
「As demand for biomass fuel continued to increase, fuel costs remained elevated, while the number of output curtailment requests from power utilities increased substantially year on year to adjust the electricity supply-demand balance amid the rapid increase in solar power generation, resulting in decreases in both revenue and operating profit.」
Although fuel demand continues to increase, persistently high fuel costs and a sharp increase in the frequency of output controls continue, emerging as lower earnings in the power generation business. - FY2024-Q1WorsenedAnnual report
「In the power generation business, the company sells all renewable electricity generated by the wood biomass power generation facility installed on the head office premises to power utilities at the fixed FIT price. Fuel costs rose sharply compared with the same period of the previous year, and the number of output curtailment requests from power utilities increased substantially year on year to adjust the electricity supply-demand balance amid the rapid increase in solar power generation, resulting in decreases in both revenue and operating profit.」
In addition to higher fuel costs, a sharp increase in the frequency of output controls accompanying the increase in solar power generation emerged as a decline in earnings in the power generation business. - FY2023WorsenedAnnual report
「Fuel costs rose particularly sharply compared with the same period of the previous year due to shortages and price increases for thinnings. In addition, power utilities implemented output curtailment to adjust the electricity supply-demand balance amid the rapid increase in solar power generation, resulting in decreases in both revenue and operating profit.」
Shortages and soaring prices of thinnings, together with output controls, led to declines in revenue and operating income in the power generation business. - FY2023-Q3WorsenedAnnual report
「Fuel costs rose particularly sharply compared with the same period of the previous year due to shortages and price increases for thinnings. In addition, power utilities implemented output curtailment to adjust the electricity supply-demand balance amid the rapid increase in solar power generation, resulting in decreases in both revenue and operating profit.」
A shortage and soaring prices of thinnings caused fuel costs to rise, which, together with output controls, led to lower earnings in the power generation business. - FY2023-Q1WorsenedAnnual report
「Fuel costs rose sharply compared with the same period of the previous year. In addition, power utilities implemented output curtailment to adjust the electricity supply-demand balance amid the rapid increase in solar power generation, resulting in decreases in both revenue and operating profit.」
While fuel procurement itself is said to remain stable, higher fuel costs and output controls have actually affected earnings in the power generation business. - FY2022MitigatedAnnual report
「As a key measure, the Company is increasing the proportion of fuel procured internally and reducing the impact of external procurement by increasing imports of wood fuel processed by its Philippine subsidiary. In addition, it is diversifying natural disaster risk by increasing the number of suppliers of “wood biomass derived from thinnings and other materials.”」
The Company is increasing its internal procurement ratio and diversifying natural disaster risk by increasing imports of wood fuel from its Philippine subsidiary and expanding its supplier base. - FY2022-Q3RestatedAnnual report
「The Company conducts stable fuel procurement using “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites, as well as by processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
The Company has reconfirmed that it continues to maintain a stable fuel supply through multiple fuel sources and imports of offcuts from a Philippine subsidiary. - FY2022-Q2RestatedAnnual report
「The CO₂ emitted by wood biomass power generation is CO₂ absorbed from the atmosphere as trees grow and is therefore considered not to result in a net increase in atmospheric CO₂ levels, or to be carbon neutral. The company stably procures fuel, including woody biomass derived from thinnings and other materials directly sourced from forests, general woody biomass such as offcuts generated at sawmills and wood-processing plants, including those within the Group, construction material waste discharged from building demolition sites, and offcuts and other materials from its Philippine subsidiary that are processed and imported for use as fuel. It also uses screening and sorting equipment to eliminate inferior fuel and has maintained stable operations and output for several years without shutdowns caused by breakdowns.」
The Company continues to maintain stable fuel procurement and stable operation of its power generation facilities through multiple fuel sources, imports of offcuts from a Philippine subsidiary, and the use of screening and sorting machines. - FY2022-Q1MaterialisedAnnual report
「The expiration of the five-year temporary mitigation measure at the end of the previous consolidated fiscal year caused electricity trading prices to decline, reducing both revenue and operating income.」
In the power generation business, the end of the temporary price mitigation measure actually resulted in lower electricity trading prices and declines in revenue and operating income. - FY2021-Q3RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company conducts stable fuel procurement by also processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
The Company continues to maintain a stable fuel supply through multiple fuel sources and imports of offcuts from a Philippine subsidiary. - FY2021-Q2RestatedAnnual report
「In the power generation business, revenue increased after the company raised the power output of the wood biomass power generation facility installed on the head office premises in May to maximize the use of its existing facilities.」
Stable procurement from multiple fuel sources has continued since the increase in generation capacity, and no disruption to fuel supply has been mentioned. - FY2021-Q2RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company conducts stable fuel procurement by also processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
The Company continues to maintain a stable fuel supply through multiple fuel sources and imports of offcuts from a Philippine subsidiary. - FY2021-Q1RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company conducts stable fuel procurement by processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
The Company continues to maintain a stable fuel supply through multiple fuel sources and imports of offcuts from a Philippine subsidiary. - FY2020-Q3RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company has been able to secure a stable fuel supply by processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
The Company continues to maintain a stable fuel supply through multiple fuel sources and imports of offcuts from a Philippine subsidiary. - FY2020-Q2MitigatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company has been able to secure a stable fuel supply by processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
A stable fuel supply is being secured through multiple procurement routes, including the processing and import of offcuts and other materials from a Philippine subsidiary. - FY2020-Q1MitigatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. In addition, the Company has been able to secure a stable fuel supply by processing and importing offcuts and other materials from a Philippine subsidiary for use as fuel.」
It is explained that a stable fuel supply has been secured through multiple fuel sources, as well as the processing and import of offcuts and other materials from a Philippine subsidiary. - FY2019RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. These fuels have been procured smoothly.」
Fuel procurement is said to be progressing smoothly, with no disruption to fuel supply mentioned. The risk of changes to the feed-in tariff scheme continues to be disclosed. - FY2019-Q3RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. These fuels have been procured smoothly.」
The Company states that it has been able to procure wood biomass fuel smoothly, with no disruption to fuel supply mentioned. - FY2019-Q2RestatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. These fuels have been procured smoothly.」
The Company states that it has been able to procure wood biomass fuel smoothly, with no disruption to fuel supply mentioned. - FY2019-Q1MitigatedAnnual report
「Wood biomass power generation uses as fuel “wood biomass derived from thinnings and other materials” sourced directly from forests, “general wood biomass,” including offcuts generated by sawmills and wood-processing facilities, including those within the Group, and “construction material waste” discharged from building demolition sites. Fuel procurement has been progressing smoothly.」
Procurement of wood biomass fuel is said to be progressing smoothly, with no disruption to fuel supply indicated as of the current quarter. No change to the risk of amendments to the feed-in tariff scheme is mentioned. - FY2016First statedAnnual report
「Stable fuel procurement is important for operating wood biomass power generation facilities. If the supply of wood biomass fuel from inside or outside the Group is interrupted, or if purchase prices surge due to shortages or other unforeseen circumstances such as natural disasters, the Group’s performance may be affected. In addition, selling prices of electricity and the purchase of all generated electricity are guaranteed for 20 years from commencement under Japan’s feed-in tariff scheme for renewable energy, which is part of the country’s energy policy. However, if the government’s basic policy or measures were to change, the Group’s business operations and performance could be affected.」
Fuel supply and prices, and policy changes to the 20-year feed-in tariff scheme, are identified as risks specific to the power generation business.