Stable Biomass Power Plant Operations Through Fuel Procurement, Quality Management and Maintenance

「市原グリーン電力(株) posted higher revenue and profit, despite conducting statutory boiler inspections and additional construction during the first quarter of the fiscal year, as well as bringing scheduled repairs forward, because it continued operating at high load.」

「Since acquiring forestland in Hanamaki, Iwate Prefecture, our Group has worked with the local forestry cooperative to develop forest management plans and establish an integrated system covering reforestation, procurement of unused timber, chipping and supply, power generation, and electricity sales. With 泉山林業 joining our Group, we expect to secure its supplier network, including forest owners, and its skilled forestry personnel, enabling stable fuel procurement for our woody biomass power generation business.」

「In the renewable energy business, all 6 power plants were operating generally steadily, while the power retail business remained strong.」

「市原グリーン電力（株） had initially planned a shutdown of approximately 40 days from the beginning of the period to carry out concentrated replacement of equipment identified as requiring attention at the end of the previous consolidated fiscal year, but the shutdown was extended by approximately 10 days. Revenue nevertheless increased and the loss narrowed because the company continued high-load operations after the repairs. （株）タケエイグリーンリサイクル was affected by repair work at the Yokosuka Biomass Power Plant and other factors, but posted higher revenue and profit due in part to increased wood deliveries.」

「（株）田村バイオマスエナジー, which began commercial operations in April 2021, continued stable operations by strengthening its in-house maintenance capabilities and establishing a stable operating structure, resulting in substantially higher revenue and profit.」

「In the renewable energy business, statutory inspections and scheduled maintenance were carried out at 4 of the 6 power plants. 市原グリーン電力（株） posted lower revenue and profit because statutory inspections of its boiler, conducted once every 2 years, and turbine, conducted once every 4 years, coincided, resulting in an extended shutdown from April to mid-May, and additional repair work was also performed. However, the plant has continued to operate stably since the additional repairs were completed.」

「These power plants are working to maintain stable operations by establishing long-term collection systems with local forestry cooperatives and others, managing moisture content at nearby storage yards for freshly cut wood and other materials, controlling quality at woody-chip production facilities, and systematically carrying out daily maintenance and scheduled repairs at the power plants.」