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Nov. 23 2009Nov. 23 2009

Electric Power Development Co.,Ltd.Electric Power Development Co.,Ltd.

Ｓｅｉｇｏｕ　　ＭＩＺＵＮＵＭＳｅｉｇｏｕ　　ＭＩＺＵＮＵＭＡＡ

J-Power’s Biomass EnergyJ-Power’s Biomass Energy　　 Projects and BusinessProjects and Business

in Japan and Other Countriesin Japan and Other Countries

22

[Contents][Contents]

1. Corporate Profile1. Corporate Profile 1-1. Corporate History 1-2. JP track records in international IPP business 　　　　 2. 2. Renewable Approach of J-PowerRenewable Approach of J-Power 2-1. J-Power’s thermal/biomass power stations in Japan

　 2-2. J-Power’s biomass energy projects in Asia 2-3. J-Power’s CDM projects in the world 2-4. The objective to promote biomass business of J-Power 2-5. Challenge for biomass energy business of J-Power

3.Biomass Energy Business in Japan and Asia3.Biomass Energy Business in Japan and Asia 3-1. JP track records in biomass energy business (Japan) 3-2. JP track records in biomass energy business (Thai) 3-3. JP co-firing biomass combustion business (Japan)

4. Biomass Energy Ratio of Electricity Production in Japan4. Biomass Energy Ratio of Electricity Production in Japan 4-1. Biomass energy ratio of electricity production in Japan4-1. Biomass energy ratio of electricity production in Japan

　　

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1. Corporate profile1. Corporate profile

4

1-1. corporate profile1-1. corporate profile

Thermal

(8stations 8,424MW)

Hydropower

(57stations 8,560MW)

Nuclear(1,383MW)(under construction)

Wind power (255MW)

Others (878MW)

Transmission Lines (2,400km)

Total Generation Capacity 18.1GW

Nation’s largest wholesale company dealing with the regional power utilities in Japan

Top Runner in hydro and coal-fired thermal power generation

1952 Establishment of Electric Power Development Co., Ltd.

1952 ～ Large-scale hydro power generation

1960 ～ Thermal power generation using domestic coal

1980 ～ Thermal Power generation using imported coal

1990 ～ New technology, environment protection measures

2004 ～ Totally Privatized

《 History of J-POWER 》

55

1-2. JP track records in international IPP business1-2. JP track records in international IPP business

Zajaczkowo (Wind power)

Poland

Chiahui (Gas CCGT)

Taiwan

Tianshi (Coal waste)

Hanjiang (Hydro power)

Xin Chang (Coal thermal)

China

CBK (Hydro power)

Philippines

Tenaska (Gas CCGT)

Elwood (Gas simple cycle)

Green Country (Gas CCGT)

Birchwood (Coal fired thermal)

Pinelawn (Gas CCGT)

Equus (Gas simple cycle)

Fluvanna (Gas CCGT)

Edgewood (Gas simple cycle)

Shoreham (Jet fuel)

Orange Grove (Gas simple cycle)

USA

Roi-Et Biomass (Rice chaff)

Yala Biomass (Rubber tree waste)

Rayong Co-generation (Gas CCGT)

Thaioil Power (Gas CCGT)

Independent Power (Gas CCGT)

Kaeng Khoi (Gas CCGT)

Samutprakarn (Gas CCGT)

Nong Khae (Gas CCGT)

Kaeng Khoi 2 (Gas CCGT)

Samet Tai (Newly bid IPP project: gas CCGT)

Nong Saeng (Newly bid IPP project: gas CCGT)

Thailand

Status Number of Projects Output J-P Share

Operation6

nations/areas,23 8,836 MW 3,123 MW

Construction

2 nations/areas,

4 2,435 MW 337 MW

Total6

nations/areas,27 11,271 MW 3,460 MW

Nhon Trach 2 (Gas CCGT)

Vietnam

66

2. Renewable approach 2. Renewable approach of J-Powerof J-Power

7

Matsuura Thermal P/S

Fuel; Sewage sludge & wood chip Combustion ratio; 0.04% Consumption; 1,800t /year

Omuta RDF G/P

Fuel; RDF Disposal Capacity; 315 ton/day Generated output; 20,600kW 　

2-1. J-Power’s thermal/biomass power stations in Japan2-1. J-Power’s thermal/biomass power stations in Japan

Existing 7coal-fired thermal power stations

RDF generation plant

8

2-2. J-Power’s biomass energy projects in Asia2-2. J-Power’s biomass energy projects in Asia

ThailandRoi-et biomass project

・ Fuel : Rice husk

・ Output Capacity :10MW

ThailandYala Biomass Project

・ Fuel: Rubber wood waste

・ Output Capacity :20MW

Operating project

Planning project

VietnamBiomass Project

・ Fuel : Rice Husk

・ Output Capacity (to be decided)

MalaysiaBiomass Project

・ Fuel : *EFB

・ Output Capacity (to be decided)

*EPB: Empty fruits bunch

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2-3. J-Power’s CDM projects in the world2-3. J-Power’s CDM projects in the world

Chile Fuel conversion by Nestle (Coal → Natural Gas) 　Chile Cogeneration by Metro GAS (Natural Gas)

Columbia La Vuelta and La Herradura Hydroelectric Power Project

Brazil Aquarius Small-scale Hydroelectric Power Project

Brazil Caieiras Landfill Gas Project

China　　Erdaoqiao　Hydropower　project

J-Power has effectively used the Kyoto Protocol Mechanisms.J-Power has effectively used the Kyoto Protocol Mechanisms. - Acquisition of Emission Credits through development of CDM projects to offset emissions by Kyoto credits-

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　 2-4.The objective to promote biomass business of J-Power2-4.The objective to promote biomass business of J-Power

Target; Approx.10% reduction from FY 2002 level (in FY2010)Target; Approx.10% reduction from FY 2002 level (in FY2010) FY2002; 0.72kg-CO2/kWh (domestic and overseas operations) FY2007; 0.70kg-CO2/kWh FY2008; 0.68kg-CO2/kWh

Japan ・ Rational combination of measures including maintenance and improvement of the efficiency of energy use (eg. nuclear and biomass) Overseas ・ Promotion of IPP business with return secured by public sector and biomass features of that country ・ *CER acquisition to prepare for further CO2 emission regulation change

J-Power will continue to reduce CO2 emissions per unit of electric power J-Power will continue to reduce CO2 emissions per unit of electric power sold through development of low CO2 emission power sources.sold through development of low CO2 emission power sources.

*CER: Certified emission reduction

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1.Small scale (High cost on capital ratio) 　 ⇒ Cost minimization with every possible way

2-5 Challenges for biomass energy business of J-Power2-5 Challenges for biomass energy business of J-Power

Challenges for biomass energy business of J-Power Challenges for biomass energy business of J-Power are as follows.are as follows.

2.Difficulty in fuel collection Mitigation with support of public sector⇒

3.Longer capital recovery period Revenue stabilization with long term PPA, *FSA⇒

*FAS: Fuel Supply Agreement

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3. Biomass Energy Business 3. Biomass Energy Business in Japan and Thailand in Japan and Thailand

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Subsidies

Prefecture J-Power

Lender

MunicipalitiesConcerned

Electric Power Co.

Contractor OM Company

Project　Company

O&MAgreement

EPCAgreementPPA

National Gov.

Subsidies

Highlights; Omuta RDF Generation PlantHighlights; Omuta RDF Generation Plant ・ Stable revenue of Tipping Fee ・ Favorable tariff with RPS in PPA ・ Investment from Prefecture

3-1. JP track records in biomass energy business (Japan)3-1. JP track records in biomass energy business (Japan)

RDF Treatment Agreement

Tipping Fee Collateral

Financing Contract

RPS

Output Capacity; 20,600kWFuel; RDFTerm of PPA; 17 years

investment

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3-2.(1) JP track records in biomass energy business (Thai)3-2.(1) JP track records in biomass energy business (Thai)

investment

financing

investment

investment investment

Investor J-Power

Investor

Lender

Project　Company

investmentfinancing

Fuel　Supplier

Electric Power

Co.

Power　Purchase　Agreement（ＰＰＡ）

Rice mills

EPC　Contract

Fuel　 Supply　Agreement

（ＦＳＡ）

NEPOSubsidies

Contractor

Highlights; Roi-Et Thermal Power StationHighlights; Roi-Et Thermal Power Station ・ Subsidies (*NEPO *currently EPPO) ・ Long Term PPA (21 years) ・ Incentive Tariff (Bunker Oil Price Link)

Fuel Supply

Output Capacity; 9950kWFuel; Rice HuskTerm of PPA; 21 years

15

3-2.(2) JP track records in biomass energy business (Thai)3-2.(2) JP track records in biomass energy business (Thai)

investment

financing

investment

investment investment

Investor J-Power

Investor

Lender

Project　Company

investmentfinancing

Fuel　Supplier

Electric Power

Co.

Power　Purchase　Agreement（ＰＰＡ）

Saw mills

EPC　Contract

Fuel　 Supply　Agreement

（ＦＳＡ）

ＵＮＤＰSubsidies

National Gov.

Subsidies

Contractor

Highlights; Yala Thermal Power StationHighlights; Yala Thermal Power Station ・ Subsidies (UNDP, National Gov.) ・ Long Term PPA (25 years) ・ Incentive Tariff (Natural Gas Price Link)

Fuel Supply

Output Capacity; 20,000kWFuel; Rubber WoodTerm of PPA; 25 years

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3-3. JP co-firing biomass combustion business (Japan)3-3. JP co-firing biomass combustion business (Japan)

Coal

Wood chip biomass fuel

　 Sewage sludge derived fuel

Biomass

Coal-FiredThermal Power Station

Reduction of CO2 EmissionProduction value by RPS

(Renewable Portfolio Standards)

　 Coal

Matsuura thermal power station (1,000MW, 2unitMatsuura thermal power station (1,000MW, 2unit)) ・・ Fuel;Fuel; Sewage sludge & wood chipSewage sludge & wood chip ・・ Mixed ratio;Mixed ratio; 0.04% on average0.04% on average ・・ Biomass consumption;Biomass consumption; 1,800 ton/ year1,800 ton/ year

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4. Biomass Energy Ratio4. Biomass Energy Ratioof Electricity Productionof Electricity Production

in Japanin Japan

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coaloilgasnuclearhydrobiomass/ wasteothers

Electricity production from biomass/waste accounts for about 2% Electricity production from biomass/waste accounts for about 2%

in Japan in 2006.in Japan in 2006.

coal 298,899

oil 120,736

gas 254,492

nuclear 303,426

hydro 95,576

biomass/waste

22,404

others 4,831

total　production

1,100,364

4-1. Biomass energy ratio of electricity production in Japan4-1. Biomass energy ratio of electricity production in Japan

Source; IEA Electricity in Japan in 2006

Electricity production in Japan in 2006 (GWh)