Expansion of power generation operations tailored to regional characteristics

「In the power business, the procurement price of PKS (palm kernel shells), the main fuel for the Onahama Biomass Power Plant, remained low, while stable operations were maintained with no unplanned shutdowns.」

「Nihonkai Suisan Co., Ltd. reported higher revenue and operating profit than in the same period of the previous year as sales volumes of industrial salt recovered, the Kanda biomass power plant, which began commercial operation in August 2023, operated steadily, and water-treatment construction-related business performed well. In the power business, operating profit at the Onahama biomass power plant exceeded the previous year's level, helped by stable PKS prices and cost-reduction initiatives.」

「In the power business, results exceeded those of the same period of the previous year, as marine transportation costs for power generation fuel followed a downward trend and the Kanda Biomass Power Plant (Kanda, Fukuoka) commenced commercial operations in August 2023.」

「The Power Business remained on a recovery trend as the Onahama Wood Biomass Dedicated-Fuel Power Plant continued to operate stably, marine transportation costs for power-generation fuels such as PKS (palm kernel shells) and wood pellets declined along with the downturn in shipping market conditions, and measures to ease vessel congestion at unloading port facilities made progress.」

「The acquisition and transfer were completed on 18 January 2023. As a result, AWEP Yamaguchi became a wholly owned subsidiary of Chugoku Electric Power, while AWEP Onahama became a wholly owned subsidiary of the Company.」

「The Company will transfer to Chugoku Electric Power its 51% stake in AWEP Yamaguchi, which it owns, and acquire from Chugoku Electric Power its 49% stake in AWEP Onahama. As a result, AWEP Yamaguchi will become a wholly owned subsidiary of Chugoku Electric Power, and AWEP Onahama will become a wholly owned subsidiary of the Company.」

「In addition to the 2 woody biomass power plants that newly began operations in 2021, Ako No. 2 and Onahama, improved profitability in the chemical-related, medical-related lifestyle healthcare, and agriculture and food-related businesses, which had progressed through the previous fiscal year, is expected to contribute to earnings growth.」

「The Akō No. 2 Biomass Power Plant, which had been under construction, began commercial operations on 2 January 2021 and is operating smoothly.」

「In the other businesses, stable operations continued at the woody biomass and coal co-fired power plant in Hofu, Yamaguchi Prefecture. However, profit was lower than in the same period of the previous year due to a planned shutdown for periodic inspections.」

「Construction of the Ako No. 2 Biomass Power Plant, scheduled to begin operations in October this year, progressed smoothly as planned.」

「The construction plan for a dedicated wood biomass power plant in Iwaki, Fukushima Prefecture, targeted to begin operations in April 2021, also progressed steadily.」

「The power business performed steadily, with stable operations continuing at the Hofu Biomass and Coal Co-fired Power Plant, which began operating in July last year.」

「The Power business progressed smoothly as stable operations continued at the Hofu biomass and coal co-fired power plant, which began operations in July this year.」

「The environmental business performed weakly due to lower sales of magnesium hydroxide, but the food business, centered on nori seaweed, and the wood biomass power generation business performed solidly and offset the impact.」

「Total capital expenditure for the consolidated fiscal year, including intangible assets, was ¥61.309 billion. Major projects included a cryogenic air separation plant constructed in Kakogawa, Hyogo Prefecture, in the industrial gases business, a biomass and coal co-fired power plant under construction in Hofu, Yamaguchi Prefecture, and a biomass power plant under construction in Ako, Hyogo Prefecture, in the other businesses.」

「㈱日本海水 Ako Plant (Ako, Hyogo) Other Power generation equipment 10,000 First half of FY2020」

「In addition, the wood biomass power generation business operated smoothly throughout the year and contributed to performance.」

「The wood biomass power plant constructed at the Ako Plant also began operating smoothly and contributed to results.」

「In addition, the wood biomass power plant constructed at the Ako Plant began operating smoothly and contributed to performance.」

「As businesses expected to drive the group's next phase of growth, the company will accelerate power-generation initiatives tailored to the characteristics of each region, including woody biomass and coal-fired power generation, while further expanding overseas operations and pursuing structural reform of the logistics business.」