Investment in the Omaezaki Port Biomass Project and Right to Increase Ownership Interest After Completion

「合同会社御前崎港バイオマスエナジー, with output of 74.95MW based on generation-end capacity, began commercial operations in January 2025. Generation also increased steadily as small-scale distributed solar power plants under Non-FIT arrangements, including corporate PPAs and FIP schemes, began operations successively. In February 2025, we additionally acquired interests in 合同会社御前崎港バイオマスエナジー, which had been accounted for as an equity-method affiliate, bringing our ownership interest to 56.0%, and made it a consolidated subsidiary.」

「合同会社御前崎港バイオマスエナジー, which had been conducting trial operations toward an October 2024 start, and 合同会社唐津バイオマスエナジー, which had been conducting trial operations toward a December 2024 start, required additional time to adjust boiler and turbine equipment for long-term stable operation. Accordingly, the scheduled start of commercial operations was changed to March 2025 (planned).」

「合同会社御前崎港バイオマスエナジー had been conducting commissioning work toward starting operations in March 2024. Because final adjustments to the boiler and turbine equipment for long-term stable operation required additional time, 合同会社御前崎港バイオマスエナジー changed the scheduled start of commercial operations to July 2024.」

「As of 31 March 2022, under the agreement among the investors in the project, we had the right, after completion of the power plant, to acquire an additional interest held by the joint sponsors, representing an 18.0% ownership interest. If we exercise this right, our voting interest will be 56.0%, and the dividend ratio will be 75.0%. Completion of the power plant is scheduled for July 2023, although the date may change depending on construction progress.」

「We acquired an interest in 合同会社御前崎港バイオマスエナジー, which operates the 御前崎港バイオマス power generation project in Omaezaki and Makinohara, Shizuoka Prefecture, in which our company participates, with capacity of 75.0MW based on generation-end output. Since our ownership interest in 合同会社御前崎港バイオマスエナジー is 38.0%, we have accounted for it as an equity-method affiliate from the third quarter of the current fiscal year. Under the agreement among the investors in the project, we have the right, after the completion date of the 御前崎港バイオマス power plant, to acquire an additional interest in 合同会社御前崎港バイオマスエナジー held by certain joint sponsors, representing an 18.0% ownership interest. If we exercise this right, our ownership interest will be 56.0%, while the dividend ratio attributable to the business will be 75.0%.」