TOKYO (Nikkei) -- Mitsui & Co. announced that it will begin power generating operations in Ontario with U.S. power generating company Calpine Corp. (CPN), The Nihon Keizai Shimbun reported in its Friday morning edition.
The companies will construct a power plant in Ontario with an output of 1 million kilowatts. The plant, which will operate on natural gas, is to be placed in operation by February 2008.
Total investments in the plant will come to Y50 billion. Each of the two companies will provide Y8 billion and the remainder will come from project financing, which will be repaid through income from power sales.
Mitsui and Calpine took part in bidding organized by the Ontario government for the construction of a plant to replace old coal-fired facilities.
Electricity produced by the new plant is to be sold on the Ontario electricity wholesale market.
