Decision on Construction of 50,000 kw Biomass Power Plant in Tahara City, Aichi Prefecture

Japan Petroleum Exploration Co., Ltd. (JAPEX), SHIZUOKA GAS AND POWER, TOKYO ENERGY & SYSTEMS INC., KAWASAKI KINKAI KISEN KAISHA, LTD., DAIICHI JITSUGYO CO., LTD., Iwatani Corporation, and Solariant Capital LLC, decided construction of the Tahara Biomass Power Plant (hereinafter "the power plant") through Tahara Bio-power LLC (hereinafter "the LLC") which promote the biomass power project (hereinafter "the project") in the Tahara 4th district in coastal area of Tahara City, Aichi prefecture, since completing the investment to the LLC and the signing of the project finance for the required funding of the project.

The project is promoted by the seven companies above through the LLC, that are highly interested and have strengths in renewable energy including biomass energy, for contribution to stable electricity supply from renewable energy sources, and to meet expectations by the local government that aim to develop a city with lower environmental impact. The power plant is fueled by wood pellets 100%, and its output scale is 50,000kW. The construction of the power plant is planned to start in October 2022, and commercial operation commencement is planned in April 2025.

The seven companies will cooperate and support to the LLC for the project promotion, including building and maintaining relationships with local goverenments and neighborhoods. Also, the seven companies will be entrusted with the works for the project based on the capabilities of each company, including fuel procurement, transportation and management of fuels, construction management, operation and maintenance after commercial operation.

Please refer the appendix for outlines of the LLC and the power plant.

The seven companies and the LLC will contribute to expanding the use of electricity from renewable energy sources with low environmental impact and developing local economies with the understanding and support of stakeholders in the surrounding area.