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Sri Lanka Tokyo Cement in power sale deal

Aug 22, 2011 (LBO) - Sri Lanka's Tokyo Cement Company (Lanka) has signed a deal with the state power utility, Ceylon Electricity Board, to sell electricity from a six megawatt biomass power plant it plans to build. Net annual electricity generation from the plant would be around 37, 230 mega watt hours which will be supplied to the national grid, it said in a stock exchange filing.

The power plant will take 18 months to build and commissioning and test runs are to start by mid-2013.

The power plant, will be set up under Tokyo Cement Power (Lanka), a fully-owned subsidiary, on a 2.5 hectare land close to the Mahaweli river at Anguruwagala village, Bathalaya at Mahiyanganaya in the Uva province.

"Bio-fuel used for power generation is gliricidia, a type of fast-growing, soft wood plant with high calorific value and the fourth most important plantation crop in Sri Lanka," the company said.

It expects to outsource chopped gliricidia wood mainly from out-growers.

The 1.5 billion rupee cost of the power plant would be partly funded by internally generated funds of the Tokyo Cement group

Tokyo Cement is a joint venture between Nippon Coke & Engineering Company (formerly Mitsui Mining Co.),

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