September 1, 2022
Tokyo Century Corporation
Shunan Power Corporation

Commercial Operations Begin at Shunan Power Corporation’s Power Plant

Tokyo Century Corporation (head office: Chiyoda-ku, Tokyo; President and CEO: Koichi Baba) has announced
that the power plant operated by Shunan Power Corporation (head office: Shunan City, Yamaguchi
Prefecture; President: Hiroaki Ogino), a consolidated subsidiary of Tokyo Century, began commercial
operations on September 1, 2022, as described below.
The power plant (installed capacity: 300 MW) is a joint venture*1 based on a shareholders’ agreement
signed between Tokyo Century, Tokuyama Corporation, and Marubeni Corporation in September 2017. Thebiomass co-firing power plant was constructed on the premises of Tokuyama Corporation’s Tokuyama
Factory. Operation of this power generation business will be handled by Shunan Power, a consolidated
subsidiary of Tokyo Century (Tokyo Century: 60%, Tokuyama Corporation: 20%, Marubeni Clean Power
Corporation: 20%).
The co-firing ratio is estimated to be around 20cal% when using white pellets at the start of commercial
operations. Given the urgency to reduce GHG emissions, however, we plan to increase the co-firing ratiowith white pellets as soon as possible and to introduce black pellets (biomass with high thermal efficiency)
to raise the co-firing ratio to about 29cal%. Assuming that the necessary technical and economic conditions
are in place, we will strive to mainly use black pellets to raise the co-firing ratio to 50cal% by around 2025,
thereby reducing GHG emissions by approximately 33% compared to the start of operations.
The Japanese government’s 2050 Carbon Neutrality Declaration mandates decarbonization efforts in theelectric power sector. In particular, thermal power sources with large GHG emissions are now required todevelop and demonstrate technologies for utilizing hydrogen and ammonia and to put these technologies
to practical use as soon as possible. Accordingly, we will be considering the use of ammonia as the main fuelfor the power plant toward achieving net zero emissions by 2040. We have also entrusted the preparationof a Transition Roadmap*2 to Sumitomo Mitsui Trust Bank, Ltd., which has expertise in formulating
strategies on GHG reduction targets. To ensure the reliability and validity of the plan, we have obtained anevaluation report from a third party, Japan Credit Rating Agency, Ltd. (JCR). The project received the highest
JCR rating under both the Green/Transition Finance Evaluation and Management, Operation andTransparency Evaluation, as well as the highest overall evaluation of Green 1*3. In its report, JCR also
evaluated our Transition Roadmap as containing technologically feasible measures for each period.
Generating electricity at this power plant will enable Tokyo Century and Shunan Power to contribute toproviding a stable supply of energy for the daily lives of the Japanese people and the development ofsustainable economic activities. At the same time, both companies will also focus on various initiatives thatwill lead to net zero emissions by 2040, including collaborating with companies possessing advanced
technological capabilities for achieving carbon neutrality, toward realizing a decarbonized society.
*1 Conclusion of Shareholders Agreement on Power Generation Joint Business Utilizing “Compensation Program for PromotingEnterprises’ Investment in Cutting-Edge Facilities Using Lease Methods”

*2 Transition Roadmap for Shunan Power Corporation’s Power Plant in Shunan City, Yamaguchi Prefecture (Currently, we have only
the Japanese version, but an English version will be released at a later date)*3 Climate Transition Finance Evaluation by Japan Credit Rating Agency, Ltd.
JCR Assigned Green 1 (T) (F) to the Transition Finance Framework of Shunan Power Corporation (Currently, we have only theJapanese version, but an English version will be released at a later date)

Transition Roadmap for Shunan Power Corporation Power Plant*4
WP: White pellets, BP: Black pellets
2022
Start
operations
WP
Biomass cofiring ratio:
20cal%
Initiatives

2024

2023

2025

Medium term
Biomass co-firing ratio using
WP and BP
29cal% 50cal%

Short term
Raise WP co-firing ratio
Introduce BPBiomass co-firing ratio:
20cal% 29cal%

Prepare ammonia
procurement plan andverification

Short term
11%

Medium term
Up to 33%

GHG
reduction
targets*5–2030
Medium toLong term
Biomass co-firingratio:
50cal% or higher
Ammonia co-firingration:20cal％ or higher

Medium toLong term
50% or higher–2040

Long term
Biomass co-firingratio:
50cal%
Ammonia co-firingratio:
50cal％Long term
100%*4 This roadmap is subject to appropriate technical and economic conditions. It is also assumed that the breakdown of the fuelconsumption ratio will be adjusted to align with economic advantages and other factors.
*5 Percentage reductions in GHG emissions compared to at the start of operations.

Overview of Power PlantLocation
Power generation method
Completion of construction/start of operations
Grid connection
Power output
Power generation efficiency
Power generation company
Cost of power generation facility related tobiomass co-firing power generation project(tentative)

Shunan City, Yamaguchi Prefecture
Biomass co-firing power generation
End of August 2022 and in September 2022
September 2021
300 MW
43%
Shunan Power Corporation
102.0 billion yenOverview of Shunan Power Corporation
Company nameHead office address
RepresentativeBusinessMajor shareholders and shareholding
ratiosShunan Power Corporation
7-46 Harumi Town, Shunan City, Yamaguchi Prefecture
Hiroaki Ogino, President
Electricity sales businessTokyo Century Corporation: 60%, Tokuyama Corporation: 20%,Marubeni Clean Power Corporation: 20%