October 20 2016
Mitsubishi Corporation
Mitsubishi Heavy Industries, Ltd.
Mitsubishi Electric Corporation
Tokyo Electric Power Company Holdings, Inc.
Joban Joint Power Co., Ltd.

Companies Set Up to Run World’s Most Advanced Coal-Fired Thermal Power Plants
in Fukushima

Mitsubishi Corporation Power Ltd., a subsidiary of Mitsubishi Corporation, along with Mitsubishi
Heavy Industries, Ltd., Mitsubishi Electric Corporation, Tokyo Electric Power Company Holdings, Inc.
*1and Joban Joint Power Co., Ltd. have established two joint ventures, Nakoso IGCC Power GK and*2Hirono IGCC Power GK , for the construction and operation of the world’s most advanced coal-fired
power plants in Fukushima, Japan. Approvals that were previously granted to Tokyo Electric Power
Company Holdings, Inc. and Joban Joint Power Co, Ltd., following the environmental impact
assessment they had undertaken on behalf of the project, were today transferred to the newly
established companies.
The total cost of the project surpasses 300 billion yen, a portion of which will be financed fromcontributions made by the five participating companies. The remainder will be sourced from anumber of domestic financial institutions, including The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
Development Bank of Japan Inc., Mizuho Bank Ltd., Sumitomo Mitsui Banking Corporation andFukushima’s The Toho Bank, Ltd. In terms of project financing, this is considered to be one of thelargest ever of this scale domestically. All the contributors have signed on to providing financing
within the context of their support for recovery in Tohoku following the Great East Japan Earthquakeand Tsunami of 2011.
The five companies reached a basic agreement for this project on August 19, 2015, and have since
been working out the details for a start-up of operations during the early 2020s. With the construction
and operating companies established, financing procured, and the relevant environmental approvals
obtained, the project is now ready to get underway.
Going forward, then, Nakoso IGCC Power GK and Hirono IGCC Power GK will each set up andoperate a 540 megawatt plant, one next to Joban Joint Power Co., Ltd.’s Nakoso Power Station in
Iwaki City and the other at the site of TEPCO Fuel & Power, Inc.’s Hirono Thermal Power Station in
the Futaba District, respectively. The new facilities will utilize next generation clean coal technology*3based on the Integrated coal gasification combined cycle, or IGCC , with operations slated to startin September 2020 in the case of the Nakoso plant and in September 2021 in the case of the Hirono
plant.
With the support and cooperation of the community and the national government and that of theprefectural and local governments in Fukushima, Nakoso IGCC Power GK and Hirono IGCC PowerGK will leverage the experience and know-how that their parent companies have developed in thepower generation business to procure the relevant materials and execute construction as well as toundertake follow-up surveillance assessments once operations get underway. The expectation isthat this project will go a long way in contributing to economic revitalization
shore up the prefecture’s industrial base.

*4in Fukushima and help

*1 Nakoso IGCC Power GK was established with capital from the five partners - Mitsubishi Corporation Power
Ltd., Mitsubishi Heavy Industries, Ltd., Mitsubishi Electric Corporation, Tokyo Electric Power CompanyHoldings, Inc. and Joban Joint Power Co., Ltd., and inherited the environmental approvals which weresecured by Tokyo Electric Power Company Holdings, Inc. and Joban Joint Power Co., Ltd. following anassessment undertaken at the Nakoso site.
*2Hirono IGCC Power GK was established with capital from the four of the partners - Mitsubishi Corporation
Power Ltd., Mitsubishi Heavy Industries, Ltd., Mitsubishi Electric Corporation, and Tokyo Electric Power
Company Holdings, Inc., and inherited the environmental approvals which were secured by Tokyo ElectricPower Company Holdings, Inc. following an assessment undertaken at the Hirono site.

*3

Integrated coal Gasification Combined Cycle (IGCC)
IGCC systems generate power using a combined cycle format incorporating coal gasification and both gas
and steam turbines. IGCC systems offer enhanced generation efficiency**, as well as reductions in carbon
dioxide (CO2) emissions of about 15% in comparison with the latest conventional coal fired power plant.
** Thermal efficiency: approximately 48% (net thermal efficiency based on a lower heating value basis)*4

From the start of relevant environmental assessment through to implementation of operations, the project isexpected to generate an economic ripple effect in Fukushima Prefecture estimated at 80 billion yen perplant over the next few decades, with employment opportunities for up to 2,000 persons/day at the peak ofconstruction.

Appendices-Outline of Operating Companies-Outline of Generation Facilities

Outline of Operating Companies
1.

Nakoso IGCC Power GK
Established:

August 2, 2016

Registered Name:

Nakoso IGCC Power GK

Headquarters:

Kawada-102-3, Iwama-machi, Iwaki-shi, Fukushima, Japan

Shareholder Breakdown:

Mitsubishi Corporation Power Ltd., 40%; Mitsubishi Heavy Industries, Ltd.,40%; Mitsubishi Electric Corporation, 10%; Tokyo Electric Power Company
Holdings, Inc., 5% and Joban Joint Power Co., Ltd., 5%.

Representative Partner:

Mitsubishi Corporation Power Ltd.

Capital:

100 million yen

Main Business:

Power generation by way of IGCC (integrated coal gasification combined cycle)
systems2.

Location:

Iwama-machi, Iwaki-Shi, Fukushima, Japan

Generating Capacity:

540 megawatts

Expected Start Date:

September 2020

Hirono IGCC Power GK
Established:

August 2, 2016

Registered Name:

Hirono IGCC Power GK

Headquarters:

Futatsunuma-58 Shimokitaba, Hirono-machi, Futaba-gun, Fukushima, Japan

Shareholder Breakdown:

Mitsubishi Corporation Power Ltd., 40%; Mitsubishi Heavy Industries, Ltd.,40%; Mitsubishi Electric Corporation, 10%; Tokyo Electric Power Company
Holdings, Inc., 10%

Representative Partner:

Mitsubishi Corporation Power Ltd.

Capital:

100 million yen

Main Business:

Power generation by way of IGCC (integrated coal gasification combined cycle)
systems3.

Location:

Hirono-machi, Futaba-gun, Fukushima, Japan

Generating Capacity:

540 megawatts

Expected Start Date:

September 2021

Corporate Logo
Nakoso IGCC Power

IGCC Power

Hirono IGCC Power

IGCC PowerThe F-shaped design is meant to capture the concepts of Fukushima, Fukkou (which is the Japaneseword for Recovery) and Future

The Colors: Blue indicates ongoing technology development, Yellow represents focus on humanresource development, while Green captures our focus on the environment and the tinge of orange,
the same color as the Fukushima flag, captures the fact that IGCC technology is being nurtured inFukushima

4．Illustrations of the Completed Plants
The Nakoso Site

The Hirono Site

Outline of Generation Facilities

1. Outline of Generation Facilities
ItemOverview

Plant Type

Air-blown Integrated Coal Gasification Combined Cycle

Plant Output

540MW (gross)

Plant Efficiency (LHV)

Approx. 48% (net)Main
Components

Gasifier System
Gas Clean-up
System
Gas Turbine

Dry feed, Air Blown, Two-Staged Entrained Bed
Wet Clean-up System (MDEA)Open Cycle Single Shaft Type

2. Mechanism of Integrated coal Gasification Combined Cycle (IGCC)

3. Construction Schedule
The Nakoso Site

The Hirono Site

Company Outlines
1. Mitsubishi Corporation
Headquarters:

3-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo Japan

Established:

July 1, 1954

Capital:204.4 billion yen

Business Activities: MC is a global integrated business enterprise that develops and operates businesses
across virtually every industry including industrial finance, energy, metals, machinery,
chemicals, foods, and environmental business. MC’s current activities are expanding far
beyond its traditional trading operations as its diverse business ranges from natural
resources development to investment in retail business, infrastructure, financial products
and manufacturing of industrial goods.
No. of Employees:

68,247 (consolidated, as of March 31, 2016)

Representative:

Takehiko Kakiuchi, President and CEO

2. Mitsubishi Corporation Power, Ltd
Headquarters:
6-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo Japan
Established:

October 1, 2015

Capital:50 million yen (as of March 31, 2016)

Business Activities: Investment and development of domestic energy businesses.
No. of Employees:

69 (as of March 31, 2016)

Representative:

Go Ishikawa, President

3. Mitsubishi Heavy Industries, Ltd.
Head Office:16-5 Konan 2-chome, Minato-ku, Tokyo, Japan

Established:

January 11, 1950

Capital:265.6 billion yen (as of March 31, 2016)

Major Business:

Energy & Environment; Commercial Aviation & Transportation Systems; Machinery,Equipment & Infrastructure; Integrated Defense & Space Systems

No. of Employees:

83,932 (consolidated, as of March 31, 2016)

Representative:

Shunichi Miyanaga, President and CEO

4. Mitsubishi Electric Corporation
Head Office:2-7-3, Marunouchi, Chiyoda-ku, Tokyo, Japan

Established:

January 15, 1921

Capital:175.8 billion yen (as of March 31, 2016)

Major Business:

Development, manufacture, sales and service of energy an d electric systems, industrial
automation systems, information and communication systems, electronic devices, home
appliances, etc

No. of Employees:

135,160 (consolidated, as of March 31, 2016)

Representative:

Masaki Sakuyama, President and CEO

5. Tokyo Electric Power Company Holdings, Inc.
Head Office:1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo, Japan
Established:
May 1, 1951
Capital:1,400.9 billion yen (as of March 31, 2016)
Major Business:
Electric power supplier and its related businesses, and gas fueling business, etc.
No. of Employees:
32,440 (Non-consolidated, as of March 31, 2016)
Representative:
Naomi Hirose, President

6. Joban Joint Power Co., Ltd.
Head Office:Kanda-sudacho 1-1, Chiyoda-ku, Tokyo, Japan

Established:

December 23, 1955

Capital:56 billion yen (as of March 31, 2016)

Major Business:

Wholesale power supply activities, etc by thermal power generation

No. of Employees:

229 (as of March 31, 2016)

Representative:

Toshiaki Koizumi, President