September 27, 2016
Press Release
TonenGeneral Sekiyu K.K.
JGC Corporation
Implementation of Biomass Power Generation Business
TonenGeneral Sekiyu K.K. (head office: Minato-ku, Tokyo; representative director and president: Jun
Mutoh; “TonenGeneral” herein) and JGC Corporation (head office: Nishi-ku, Yokohama; chairman
and representative director: Masayuki Sato; “JGC” herein) have decided to jointly establish Muroran
Biomass Power Generation G.K. (“the new company” herein) and implement a biomass power
generation business, utilizing idle land owned by TonenGeneral and located in Kohoku-cho, MuroranCity, Hokkaido.
For the new company, construction of an environmentally-conscious, high-efficiency biomass powergeneration plant is planned, which will be one of the largest wood-biomass-fueled power generation
facilities in Japan. The new business will also utilize renewable energy feed-in tariffs. Through thisproject, fully utilizing TonenGeneral’s expertise in electric power source development and JGC’sexpertise in the power generation business and power generation facility design and construction in
Japan and abroad while advancing the new business in a safe and stable manner, the two companies
will contribute to the development and revitalization of the communities where the operations of the
new business will be conducted.
Having designated the electric power business as one of its growth options, the TonenGeneral Groupaims to provide consumers with a long-term, stable supply of electric power by advancing its electric
power business in the areas of electric power source development and electric power sales.
Establishment of the new business is part of initiatives, including TonenGeneral’s advancement of thedevelopment of high-efficiency thermal power sources, for the diversification of electric powersources, and is aligned with national policy promoting the introduction and growth of renewableenergy. Along with its efforts to mitigate effects on the environment, the TonenGeneral Group willcontinue to make effective use of limited resources and work to maintain a sustainable environment.
Since the mid-2000s, JGC has been an independent power producer using conventional fuel, andsince 2010 has worked on projects in Japan and abroad for renewable energy power generation
using solar heat and sunlight, achieving excellent business results and gaining considerable
knowledge in domestic and overseas power generation businesses. In addition, in its medium termbusiness plan, Beyond the Horizon, announced in May of this year, JGC stated its intention toenhance and expand its business in the field of infrastructure, and has designated the environmental
and new energy business as an area for business expansion. Participation in the new company isaligned with this policy. By actively pursuing the development of the renewable energy power
generation business, JGC will continue to its global contributions to the realization of a sustainablesociety.

Overview of Muroran Biomass Power Generation G.K. (planned)
Head office:Minato-ku, Tokyo (to be moved to Muroran City, the site of construction, withcommencement of construction in August 2017)

President:

Masayuki Enokida

Paid-in capital:

100 Myen

Date established: October 11, 2016
Investment ratio: TonenGeneral: 90%, JGC: 10%
Overview of biomass power generation plant construction plan
Planned project site:

Idle land owned by TonenGeneral in Kohoku-cho, Muroran City, Hokkaido

Area:

Approximately 40,000 ㎡Electric power output:

74,900 kW

Fuel:

Wood biomass (mainly palm kernel shells)

Power generation facilities: Circulating fluidized bed boiler, reheat condensing turbine
Start of construction:2017 (planned)

Start of operation:

Spring 2020 (planned)

Inquiries
TonenGeneral Sekiyu K.K.
Media Relations Department
Public Relations & CSR
Contact: K. Kai, M. Kozaki, C. Arai
Tel: 03-6713-4400

JGC Corporation
Public Relations & Investor Relations Department
Corporate Administrative & Financial Affairs Div.
Contact: T. Endo, K. Ougi, Y. Sano
Tel: 045-682-8026[The official language for TonenGeneral Sekiyu's filings with the Tokyo Stock Exchange and Japanese authorities, andfor communications with our shareholders, is Japanese. We have posted English versions of some of this informationon this website. While these English versions have been prepared in good faith, TonenGeneral Sekiyu does not
accept responsibility for the accuracy of the translations, and reference should be made to the original Japanese
language materials.]