View
3
Download
0
Category
Preview:
Citation preview
F t G th St t i fFuture Growth Strategies for the Environment and Energy-Related Business
Yuichi NishigorigORIX Corporation
Head of Energy and Eco Services Business Headquarters
September 11, 2014
Copyright © 2014 ORIX Corporation All rights reserved.
Contents
’ d l d ORIX’s Environment and Energy-Related Business
Renewable EnergyRenewable Energy
Power Liberalization Initiatives
Overseas Energy Business
R d R li B i Resource and Recycling Business
Copyright © 2014 ORIX Corporation All rights reserved. 1
ORIX’s Environment and Energy-Related Business
Copyright © 2014 ORIX Corporation All rights reserved. 2
History of ORIX’s Environment and Energy-Related Business
Energy field Expansion of renewable b i
Started environment and energy-related business in 1990sEntry into power b sinessgy
Entry into wind power generation
Expansion of energy-saving services
Start of power generation business
energy business
S l
business
ESCO2000-
Electricity wholesale and retail (trading)
Solar power generation system sales and electric
power usage visualization
Biomass power plant operation
Solar power generation and
storage batteries
2010s2000s1990sLeasing
Waste treatment intermediation
1998-Establishment of
nationwide recycling systems
Waste treatment facility operation Metal resources
business
Environmental field
Network-buildingOperation of waste treatment facilities Launch of metal resources
business
Copyright © 2014 ORIX Corporation All rights reserved. 3
Environmental field
Status of the Environment and Energy-Related Business
Target 1,000 MW in renewable energy
Environment and Energy-Related Business Assets Renewable Energy-Related Power Output
(JPY Bn) (MW)
Copyright © 2014 ORIX Corporation All rights reserved. 4
Environment and Energy-Related Business Policies
In light of institutional reforms that followed the Great East Japan Earthquake including the new basic energy plan and power liberalization, ORIX is aiming to become a Comprehensive Energy Service Provider that contributes to stable supplybecome a Comprehensive Energy Service Provider that contributes to stable supply of energy that meet the needs of various consumers of electricity.
In Japan, ORIX will work to spread the use of renewable energy, an energy which can be produced domestically. ORIX aims to become one of Japan’s largest renewable energy provider in the next five years by developing diverse power sources including solar, geothermal, wind, and biomass power plants, while using h f d i iffthe feed-in tariff program.
In the overseas, ORIX will apply its strong technological capability to its overseas operations in providing services that promotes efficient energy use and contributes p p g p gyto stable supply of energy.
ORIX seeks to lead the industry in relation to the waste/recycle field to promote efficient use of resources such as urban mineefficient use of resources such as urban mine.
ORIX aims to take a leading role as a comprehensive environment and energy service provider by involving in both supply and demand of energy and also
Copyright © 2014 ORIX Corporation All rights reserved. 5
resource cycle.
Energy Business: Core LineupRenewable Energy (Japan)
Mega-solar power generation
Biomass power generationp g gWood chip-fired thermal power plant.
Wind power generationInvestment in wind power
Rooftop solar power generation
pgeneration projects.34 units at 4 sites.
Geothermal power generation Ownership of one of the l t i t th llargest private geothermal power generating facilities in Japan.
Copyright © 2014 ORIX Corporation All rights reserved. 6
Energy Business: Core Lineup
ESCOProvide comprehensive
Energy Services (Japan)
Power Producer and Supplier (PPS)
services related to energy conservation for buildings.
Supplier (PPS)Supply electric power at affordable prices mainly to private businesses in need of high-voltage power within the transmission
f T k El t i P
Demand Response ServiceSupport the reduction of
k l d d d
areas of Tokyo Electric Power, Kansai Electric Power and Chugoku Electric Power.
Bulk Electric Powerpeak electricity demand and electricity use.
Storage Battery
Bulk Electric Power Purchasing ServiceDevelopment of a bulk electric power purchasing service for multi-dwelling housing.Storage Battery
Related BusinessDevelopment of storage battery business
h h d
g g
together with NEC and EPCO. Rental of storage batteries to homes.
Copyright © 2014 ORIX Corporation All rights reserved. 7
Energy Business: Core Lineup
Energy Services (Overseas)Biomass Power Generation
Independent Power Producer (IPP)
Investment in Nature’s Energy Solution (Singapore) (NESS), a biomass power generation company based in Singapore
Investment in South Korean coal-fired cogeneration power company GS E&R (formerly STX Energy)ORIX’s share of capacity: in Singapore.
Power plants in Thailand and Malaysia.ORIX’s share of capacity: 13 MW (Gross capacity: 30MW)
ORIX s share of capacity: 175MW (Gross capacity: 175MW) *In process of building 1190 MW coal-fired power plant (51% t k d b STX 30MW)(51% stake owned by STX Energy)
Investment in power generation company GBPC in the Philippines.ORIX’s share of capacity: 487MW (Gross capacity: 627MW)
Energy Conservation ServicesInvestment in energy conservation services company Enovity.Expansion of energy conservation
Copyright © 2014 ORIX Corporation All rights reserved. 8
tools centered on Asia.
Renewable EnergyRenewable Energy
Copyright © 2014 ORIX Corporation All rights reserved. 9
Solar Power Generation
Record showing top level of involvement in the solar power business
Rooftop solar powerMega solar powerSolar power system Rooftop solar power generation business
Mega-solar power generation business
Solar power system sales business Total
8912
891MW395 MW 424 MW 72 MW MW
Projects with firm deliveries through June 2014
Projects planned or starting construction or operations through June 2014
Projects planned or starting construction or operations through June 2014
Copyright © 2014 ORIX Corporation All rights reserved. 10
Mega-Solar Projects
78 mega-solar projects with total power generation capacity of 424 MW are being constructed or in operation
Pl d d i 800 MW Planned to expand capacity to 800 MW
Development Plan FY14.3 FY18.3FY17.3FY16.3FY15.3
357 MWAccumulated projects
Projects in operation
670 MW 800 MW 800 MW 800 MW
133 MW 494 MW 710 MW 800 MW42 MWp
Construction planned
Under construction
In operation
2 MW class
3 MW to 10 MW
Over 10 MW
Copyright © 2014 ORIX Corporation All rights reserved. 11
MW
Examples of Mega-solar Projects
Mega-solar power plant on a former airport siteMakurazaki CityMakurazaki City8.2 MW
Mega-solar power plant onMega solar power plant on a former golf-course siteMie Prefecture51 MW
Mega-solar in conjunction with
51 MW
motor sports Tokachi Speedway21.9 MW
Copyright © 2014 ORIX Corporation All rights reserved. 12
21.9 MW
Biomass Power Generation
Wood chip-fired thermal power generation
Operation of Agatsuma biomass power plantp p g
Power generation capacity: 13.6 MWAnnual power transmission: 92 million kWhStarted commercial operations in Sep 2011Started commercial operations in Sep. 2011
Hibikinada Coal and Biomass Power PlantMixed coal and wood chip fired power generation
(Construction of two power plants planned)
Mixed coal- and wood chip-fired power generation
Power generation capacity: 110 MW
Soma Coal and Biomass Power PlantMi d l d d hi fi d tiMixed coal- and wood chip-fired power generation
Power generation capacity: 110 MW
Agatsuma Biomass Power Plant
Copyright © 2014 ORIX Corporation All rights reserved. 13
g
Geothermal Power Generation
Operation of private geothermal power generation facilities at the Suginoi Hotel in Beppu City, Oita Prefecture
Effective use of geothermal energy as an operator of both the Japanese hot springs inn andEffective use of geothermal energy as an operator of both the Japanese hot springs inn and geothermal power generation businesses in Japan’s leading hot springs areas
inn
Ancillary facilities using hot springs
hot s
prin
gs
usin
ess
y g p g
”Tanayu” - Large outdoor hot springs bath
”Aqua Garden” - Large outdoor hot springs
”Aqua Beat” - Hot springs pool Expertise in both the
Japanese hot springs inn
Japa
nese
bu Contributing to the promotion of regional hot springs by conducting a hot-water supply business
Japanese hot springs inn and the geothermal power generation businesses
l h b
al p
ower
bu
sine
ss
Power generation capacity: 1,900 kW
Started operations in 1981, with operations
Revitalize the region by maximizing the potential of geothermal energy Result: preserve hot
i
Geot
herm
age
nera
tion
b p , pcontinuing after turbine upgrade in 2006
Surplus steam and hot water are used in the hot-water supply business
springs
Copyright © 2014 ORIX Corporation All rights reserved. 14
Geothermal Power Generation
Target a total capacity of 30 MW in 5 years, primarily through 2 MW facilities
Suginoi Hotel (power generation capacity: 1.9 MW)Kazamaura Village, Shimokita County, Aomori
Prefecture (power generation capacity: 2 MW)Prefecture (power generation capacity: 2 MW)Survey location: the area surrounding Shimofuro hot spring site in Kazamaura Village, Shimokita County, Aomori Prefecture
Survey content: Physical exploration
Survey period: June 2014 to February 2015 (tentative)
Hakodate City, Hokkaido Prefecture (Power generation capacity: 2 MW)(Power generation capacity: 2 MW)Survey location: Minamikayabe Region, Hakodate City, Hokkaido Prefecture (in the vicinity of Mt. Nakitsura)
Survey content: Initial stage survey
Survey period: June 2014 to October 2014(tentative) Suginoi Hotel geothermal power generating facility
Copyright © 2014 ORIX Corporation All rights reserved. 15
Wind Power Generation
Power generation capacity Business partner Investment stake Invested
Target 150 MW in 5 years
Akitaaraya Wind Farm (Akita Prefecture) 6.8 MW EcoPower 19% Feb. 1997
Tachikawa Wind Farm (Yamagata Prefecture) 3.2 MW EcoPower 5% Sep. 1995
Goto-Kishiku Wind Power Plant (Nagasaki Prefecture) 1.2 MW EcoPower 19% Apr. 1997
Nikaho Kogen Wind Power Plant (Akita Prefecture) 24.7 MW J-POWER 20% Apr. 2000
Akitaaraya Wind Farm Tachikawa Wind Farm
Goto-Kishiku Wind Power Pl
Nikaho Kogen Wind Power Plant
Plant
Copyright © 2014 ORIX Corporation All rights reserved. 16
Renewable Energy Business Policies
The current fiscal year will likely be the final year to source mega-solar projects (decrease in optimal sites and grid capacity limitations)
Step up installation of solar power systems on rooftops over the medium to long term (decrease in Step up installation of solar power systems on rooftops over the medium to long term (decrease in unit power generation costs due to technological advancement, and combinations with storage batteries, etc.)
Focus on developing power generation from wind geothermal biomass and other sources
<Solar power generation> mega-solar + rooftop solar power generation
Increase to around 930 MW (Mega-solar: 800 MW; Rooftop solar power generation: 130 MW)
Focus on developing power generation from wind, geothermal, biomass and other sources
( g ; p p g )
Total project cost: ¥250 billion
<Geothermal power generation>
Target 30 MW through small to medium-sized power generation facilities (5 years)
In parallel, prepare large projects with longer development periods
<Wind power generation>p g
Plan to develop mainly offshore wind power system
<Biomass power generation>
l b l
Copyright © 2014 ORIX Corporation All rights reserved. 17
Plan to construct 220 MW biomass power plants
Power Liberalization InitiativesPower Liberalization Initiatives
Copyright © 2014 ORIX Corporation All rights reserved. 18
Business Initiatives Targeting Power Liberalization
2015 Establishment of regional grid operator2015 Establishment of regional grid operator
2016 Full liberalization of electricity retailing market 2016 Full liberalization of electricity retailing market
From 2018Separation of power generation and transmission, real-time
market, gas market liberalization
From 2018Separation of power generation and transmission, real-time
market, gas market liberalization
de: p
ower
io
n an
d em
ent Solar, wind, geothermal and biomass
der
Supp
ly si
dge
nera
tipr
ocur
e
High-efficiency coal-fired thermal power and gas co-generationNo.1 in renewable
energy vice
pro
vid
and
High-voltage power sales
No.1 in PPS profit
ener
gy se
rv
side:
supp
lyst
orag
e
Gas retailing and wholesalingBulk electric purchasing service for condominium
Entry into low-voltage power sales
rehe
nsiv
e e
Dem
and
Storage battery rental: 100,000 units
Bulk electric purchasing service for condominium buildings: 100,000 units
Aggregator Com
p
Copyright © 2014 ORIX Corporation All rights reserved. 19
Electric Power Sales
Target 1 million kW in FY17.3• Started supplying power to ordinary users as a PPS (specified-scale electricity utility) on May 1, 2009
• Electricity is currently supplied inside the service areas of Tokyo, Kansai, and Chugoku Electric Power. ORIXElectricity is currently supplied inside the service areas of Tokyo, Kansai, and Chugoku Electric Power. ORIX has entered into power contracts with around 2,000 companies nationwide (4,000 contracts)
• Commenced sales activities in the Chubu Electric Power service area in April 2014
• Utilize sales network in Japan
• Target 1 million kW in supply of high-voltage power in 2017 and consider entry into low-voltage market in accordance with full liberalization of electricity retailing market
• Secure power sources needed to reach this target through a combination of in-house power generation and procurement from third parties
In-house power generation
procurement from third parties
Operate a wood chip-fired thermal power station (13.6 MW) in Gunma Prefecture
Plan to build 110 MW mixed coal- and biomass-fired power plants in Soma and Kitakyushu City
p g
p p y y
Purchase solar power
Copyright © 2014 ORIX Corporation All rights reserved. 20
Contracted Power by Supply Area
(kW)
Expanded the supply area to commence sales activities in the Chubu Electric Power service area in April 2014(kW)
9%
38%
53%
Copyright © 2014 ORIX Corporation All rights reserved. 21
Overseas Energy BusinessOverseas Energy Business
Copyright © 2014 ORIX Corporation All rights reserved. 22
Overseas Expansion
South Korea: GS E&R (Formerly STX Energy)Provides coal-fired thermal power co-generation services STX
Operations include power generation and energy conservation business
U.S.: EnovityProvides coal fired thermal power co generation services. STX Energy is currently constructing a 1,190 MW ultra supercritical coal-fired thermal power plant.
Provides energy consumption reduction and optimization services. Customers include advanced facilities of federal and state
Hong Kong: ADB
2
advanced facilities of federal and state governments, power and gas utilities, and global corporations.
Established a fund targeting environment-related businesses (renewable energy, energy services (energy conservation business, etc.)) and infrastructure (water business, etc.) in emerging Asian countries.
B d ll f f d b ADB ORIX d
1
Based on a call for fund managers by ADB, ORIX and Robeco jointly applied and were selected as fund managers.
Philippines: Global Business Power
Singapore: Nature’s Energy SolutionA power generation company based in the Visayas region. Owns and operates nine power plants with a total powerSingapore: Nature’s Energy Solution Owns and operates nine power plants with a total power generation capacity of 627 MW.Investment in operating companies of biomass power
plants using palm oil in Thailand (9 MW) and Malaysia (10 MW x 2 plants).
Copyright © 2014 ORIX Corporation All rights reserved. 23
Overseas Expansion (GBPC & Enovity)
Copyright © 2014 ORIX Corporation All rights reserved. 24
Overseas Expansion (ADB Fund)
Asia Climate Partners L.P.Name of fund
1 R bl
Size of fund USD 750 million – 1 billion
1. Renewable energy Wind, solar, hydroelectric, biomass, geothermal, waste heat utilization, etc.
2. Energy servicesESCO i ti i ti ffi i
Investment targets
ESCO service, energy conservation service, co-generation, energy efficiency, energy conservation for public transportation, etc.
3. Renewable energy-related supply chainsWind turbines, solar modules, energy conservation-related parts, electric vehicle
l d bparts, water supply and sewer business, etc.*Excluded: construction, operation and expansion of coal, oil and nuclear power generation facilities; manufacturing of nitrogen and chlorofluorocarbons, etc.
f Investment in funds, direct investment
Target i Developing countries (including China and India) in the ADB operating area (Asia-Pacific
Type of investment
Investment in funds, direct investment*Funding methods include equity investments, mezzanine investments, convertible
bonds, and preferred shares
investment regions
Developing countries (including China and India) in the ADB operating area (Asia Pacific region)
Fund managers ORIX, Robeco, and ADB will jointly manage the fund. A fund management headquarters h b t i H K
Copyright © 2014 ORIX Corporation All rights reserved. 25
g has been set up in Hong Kong
Overseas Expansion (Alliance with Robeco)
Robeco has been expanding its business primarily in Europe and the U.S.
ORIX h lid t k i A i th Middl
Outline of Robeco Established: 1929 Headquarters: Rotterdam, the Netherlands
ORIX has a solid network in Asia, the Middle East and Japan
Further accelerate global business expansion
CEO: Roderick Munsters (Robeco Group) Business: Asset management company Locations: Headquarters; sales offices: 12;
investment and sales offices: 8investment and sales offices: 8
Copyright © 2014 ORIX Corporation All rights reserved. 26
R d R li B iResource and Recycling Business
Copyright © 2014 ORIX Corporation All rights reserved. 27
Resource and Recycling Business
Metal waste processing machinery
Stockyard
Processing volume: 56 000
ORIX Eco Services Corporation, Funabashi Plant
Processing volume: 56,000 tons per year
High-temperature reactor that melts waste
Stockyard ORIX Environmental Resources Management C ti Y ii Pl t
melts waste
Processing volume: 120,000 tons per year
Copyright © 2014 ORIX Corporation All rights reserved. 28
Corporation, Yorii Plant
Disclaimer
These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials.
These materials contain forward-looking statements that reflect the Company’s intent, belief and current g p y ,expectations about future events and financial results. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company’s operations and are subject to risks, uncertainties and other factors beyond the Company’s control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences include, but are not limited to, those described under “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission and under “Business Risk” of the securities report (yukashouken houkokusho) filed with th Di t f th k t l l Fi Bthe Director of the kanto local Finance Bureau.
Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by the Company or any affiliate thereof.
Copyright © 2014 ORIX Corporation All rights reserved. 29
Additional InformationFor annual and more historical data please access our website. A list of major disclosure materials is given below.
ORIX W b i URL h // i j / / /ORIX Website: URL: http://www.orix.co.jp/grp/en/IR Website: URL: http://www.orix.co.jp/grp/en/ir/
If ld lik b i l d d il li f j lIf you would like to be included on our e-mail list for major news announcements, please send your request to the address below.
ORIX Corporation Corporate Planning Department
World Trade Center Building., g ,2-4-1, Hamamatsu-cho, Minato-ku,
Tokyo 105-6135, Japan
T l 81 3 3435 3121Tel: +81-3-3435-3121 Fax: +81-3-3435-3154
haruyasu_yamada@orix.co.jp
Copyright © 2014 ORIX Corporation All rights reserved. 30
Recommended