Veolia Environnement SA, a French utility and water management company, has won two contracts to operate biomass power plants in northern Japan through its local subsidiary.

The plants will generate 100 gigawatt-hours annually, powering 22,000 households on Honshu Island, the Paris-based company said in a statement. The contracts are for 20 years and are valued at 90 million euros ($98 million) total.

Operations will begin this month at the Hirakawa facility and in December 2016 at the Hanamaki unit. The feedstock will be sourced from local forestry industries. Veolia Japan will be partnering with Takeei Corp, a Minato-Ku, Japan-based recycling company.

“Japan wants to triple the share of renewable energies in its energy mix by 2030, and that is opening up significant prospects for the company, in particular in the area of biomass power plant operation,” said Regis Calmels, Veolia’s senior executive vice president Asia.

About 2 percent of Japan’s electricity is currently from biomass with a capacity of almost 3.5 gigawatts according to data from Bloomberg New Energy Finance. The country generates 75 percent of its power from fossil fuels.

Veolia operates two of biomass plants in North America and one in Ireland.

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