Promotion and expansion of energy efficiency and domestically produced renewable energy

「In the Green Energy business, we will expand investment in wood biomass-related fields, including forest management.」

「The total amount of capital expenditure by the corporate group during the current consolidated fiscal year was ¥1,726 million. The principal expenditure was as follows: (i) major facilities completed during the current consolidated fiscal year: Green Energy business, ㈱エフバイオス, sawmill equipment.」

「Toward carbon neutrality, our group formulated the “EF-ON Group Transition Strategy,” targeting a 50% reduction in Scope 1 and 2 emissions excluding power generation by fiscal 2030 from fiscal 2021 levels, and net zero by fiscal 2050.」

「During the current interim consolidated accounting period, the proportion of unused wood in fuel used at the group's power plants other than EF-ON Shingu improved year on year, increasing revenue. In addition, fuel, maintenance and other costs returned to normal levels, resulting in higher profit as these factors offset EF-ON Shingu's weak performance.」

「Except for scheduled voluntary inspections at EF-ON Shingu in January and EF-ON Mibu in March, operations progressed steadily without any major problems.」

「Total electricity transmission from the group's power plants reached a record high, including shutdown periods, as each plant maintained high utilization together with EF-ON Shingu, which began operations in the previous fiscal year.」

「As EF-ON Shingu transitioned to full-scale operations in August of last year and contributed to performance during the current quarterly accounting period, total electricity transmission substantially exceeded the year-earlier period.」

「During the current quarterly consolidated accounting period, our group's EF-ON Shirakawa power plant transitioned to the FIP scheme (Feed-in Premium). Performance under the FIP scheme during the period exceeded the projected revenue under the previous FIT scheme.」

「EF-ON Shingu transitioned to full-scale operations in August, and total electricity transmission substantially exceeded the year-earlier period.」

「The newly built EF-ON Shingu power plant experienced a problem during maximum-output trial operation of the generating equipment, resulting in a significant delay in the transition to commercial operations. Restoration work was completed by the end of June, and work is proceeding diligently toward completion.」

「The newly built EF-ON Shingu power plant completed connection work for the grid interconnection line, but a problem occurred during maximum-output trial operation of the generating equipment, delaying the construction schedule. Work is proceeding diligently toward completion in July.」

「The newly built EF-ON Shingu power plant completed connection work for the grid interconnection line, but a problem occurred while the generating equipment was being operated at maximum output. As resolving the problem will require a certain amount of time, the scheduled start of operations has been delayed.」

「We have entered into specified wholesale supply agreements with our subsidiary power plants for use in EF-ON's retail electricity business not only in Kyushu but also in the Kanto and Tohoku regions, and by purchasing traceable non-fossil certificates, we have established the framework to sell electricity generated by our group as 100% renewable energy.」

「At the Shingu plant, the main facilities, including the turbine building, condenser and fuel warehouse, have now been erected, and work has progressed to the installation of piping and auxiliary equipment.」

「To maintain stable operations at our wood biomass power plants and contribute to regional economic development, our group is promoting the revitalization of forest resources. We are focusing on securing and training personnel and acquiring logging equipment and operating sites in order to accumulate expertise in forest management and develop this into a core business in the future. Construction of our group's fifth plant, EF-ON Shingu, is progressing generally smoothly, and the buildings housing the turbine, condenser and other equipment are beginning to take visible shape.」

「The Mibu plant, which began operating in the second half of the previous fiscal year, experienced an unplanned shutdown lasting just under one week in September, but operations and fuel consumption during the summer progressed smoothly and made a significant contribution to improving group performance. Construction of the power plant in Shingu, Wakayama Prefecture, is also progressing as planned, without any impact from the spread of COVID-19.」

「In our group's power-generation business, performance recovered year on year and we achieved higher revenue and profit as EF-ON Mibu commenced operations, offsetting the decline in revenue caused by deteriorating fuel efficiency in the first quarter due to unfavorable weather and the allocation of fuel centered on recycled wood. EF-ON Shirakawa and EF-ON Hita power plants underwent annual scheduled maintenance from October through December, but during the other periods, including the third quarter, the existing power plants maintained high utilization, and overall electricity transmission substantially exceeded the year-earlier period as EF-ON Mibu also commenced operations, making a significant contribution to improved group performance. Construction of the new power plant in Shingu, Wakayama Prefecture, is also progressing as planned, with no impact from the spread of COVID-19 at this point.」

「EF-ON Mibu began trial operations during the period and contributed to improved results. For the power plant construction plan in Shingu, Wakayama Prefecture, civil engineering work has begun and is progressing as planned.」

「Development of the new biomass power plant in Mibu, Tochigi Prefecture, is proceeding with installation of most equipment substantially complete, and trial operations are scheduled to begin in the second quarter. For the power plant construction plan in Shingu, Wakayama Prefecture, a groundbreaking ceremony was held and construction has begun; both plants are progressing as planned.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, is progressing smoothly toward commencing operations at the end of 2019. Construction of the turbine-building structure and foundations for various items of equipment has been completed, and equipment installation, exterior work and infrastructure work are under way. For the new power plant construction plan in Shingu, Wakayama Prefecture, we have acquired the project site and arranged project financing, and have also entered into an agreement with the supplier of the main equipment, including the boiler and turbine. The project is likewise progressing smoothly.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, is progressing smoothly toward commencing operations at the end of 2019. The turbine-building structure has been completed, exterior and infrastructure work is under way, and the generating equipment is being installed as planned. For the new power plant construction plan in Shingu, Wakayama Prefecture, we have acquired the project site and arranged project financing, and the project is likewise progressing smoothly.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, is progressing smoothly toward commencing operations at the end of 2019. The structural steel work for the turbine-building structure has been completed, and exterior work and foundation work for various items of equipment are under way. For the new power plant construction plan in Shingu, Wakayama Prefecture, we have acquired the project site, and that project is also progressing smoothly.」

「In the Green Energy business, we will expand investment in wood biomass-related fields. In the construction of wood biomass power plants, we will complete construction and commence operations at the fourth plant, EF-ON Mibu, in Mibu, Tochigi Prefecture by 2020, and advance development of the fifth plant, EF-ON Shingu, in Shingu, Wakayama Prefecture.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, is progressing as planned, and preparations are proceeding diligently toward commencing operations at the end of 2019.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, began in November and is progressing smoothly, with operations targeted to begin by the end of 2019.」

「Construction of the new biomass power plant in Mibu, Tochigi Prefecture, is progressing smoothly, with operations targeted to begin by the end of 2019. We are expanding the business steadily toward achieving the Fourth Medium-Term Management Plan, centered on this project. We are also working diligently to advance the construction plan for a new power plant in Shingu, Wakayama Prefecture, announced in September.」

「For the new biomass power plant project in Mibu, Tochigi Prefecture, we acquired the project site and entered into a financing agreement for construction costs, and the project is progressing smoothly.」

「We are also currently advancing a new biomass power plant project in Mibu, Tochigi Prefecture.」

「Under the EF-ON Group's Fourth Medium-Term Management Plan, our immediate strategy is to expand investment, particularly in the wood biomass-related field, with the aim of promoting and expanding “energy efficiency” and “domestically produced renewable energy” and contributing to the realization of the energy mix set out in the Basic Energy Plan.」