Participation in Abashiri Biomass Power Generation Project

Japan Petroleum Exploration Co., Ltd. (JAPEX) participated in the biomass power generation project (hereinafter "the project"), consisting of the 2^nd and 3^rd of the Abashiri Biomass Power Plant, which is under development in the Notoro Industrial Complex at Abashiri city, Hokkaido.

The project was originally launched by WIND-SMILE Co., Ltd. (hereinafter "WINS"), which mainly engaged in the development and design, sales, construction, and operation and management of natural energy power generation systems. Currently, the project is under construction by the two special purpose companies (SPC) for the 2^nd and 3^rd plants (hereinafter "the two SPCs"), as the business owners which were established by WINS. The 2^nd plant is scheduled to start commercial operation in May 2022, and the 3^rd plant in December 2022. The output scale for each plant is 9,900kW (total of 9,800kW), planning to use domestic wood chips from Hokkaido.

Our participation in the project is due to the match of interest between WINS and us: WINS had been seeking new sponsors of the project as the development progress of 2^nd and 3^rd plants, and JAPEX had been aiming to participate in renewable power generation project that will enable us to acquire experience and knowledge in business operations and make a significant contribution to the local community. JAPEX completed the participation procedure in the project by the investment to the two SPCs on September 30, 2021.

Please refer the appendix for the outline of the project such as power plants and the two SPCs.

JAPEX, with the two SPCs and sponsors, will contribute to expanding the use of electricity derived from renewable energy sources with low environmental impact and developing local economies, with the understanding and support from local stakeholders.