Note: The following is an English translation of the Japanese-language original

June 27, 2022
Abashiri Biomass Power 2 LLC.
Abashiri Biomass Power 3 LLC.
Japan Petroleum Exploration Co., Ltd.
MITSUBISHI GAS CHEMICAL COMPANY, INC.
SMFL MIRAI Partners Company, Limited
TOKYO ENERGY & SYSTEMS INC.
WIND-SMILE Co., Ltd.
Nippon Paper Lumber Co., Ltd.

Signing of Green Loan Financing Agreement
for Abashiri Biomass 2nd &3rd Power Plants Project
Abashiri Biomass Power 2 LLC. and Abashiri Biomass Power 3 LLC. (hereinafter “the SPCs”), which arepromoting the Abashiri Biomass 2nd & 3rd Power Plants Project (hereinafter “the project”) in Abashiri City,
Hokkaido, and its six sponsors of the project, which are Japan Petroleum Exploration Co., Ltd. (JAPEX),MITSUBISHI GAS CHEMICAL COMPANY, INC., SMFL MIRAI Partners Company, Limited, TOKYO
ENERGY & SYSTEMS INC., WIND-SMILE Co., Ltd. (WINS), and Nippon Paper Lumber Co., Ltd.
(hereinafter “the six sponsors”) announced that the SPCs have signed a syndicate-type green loan financing
agreement (hereinafter “the agreement”) for promoting the project today.
The six sponsors, which are highly interested in carbon-neutral business such as the development of
renewable energy power generation and the contribution to local economy, participate in the project byinvesting in the SPCs. The Abashiri Biomass 2nd & 3rd Power Plants (hereinafter “the power plants”) have an
output capacity of 9,900kW for each (total of 19,800kW), and use 100% domestic wood chips made from woodsin Hokkaido as fuel. The power plants have been in construction since September 2020, aiming to commencecommercial operation of 2nd plant in August 2022, and 3rd plant in February 2023. The six sponsors support
the SPCs’ works and have been entrusted with the specific works in the project from the SPCs.
With regard to the agreement, the project has acquired the conformity evaluation of the “Green LoanPrincipals” and the “Green Loan and Sustainability Linked Loan Guidelines of Ministry of the Environment”
by Rating and Investment Information, Inc. (R&I), a third-party evaluation organization, based on thepromotion as a green project, the CO2 emission reduction effect of approximately 84,831tons a year, bysupplying electricity from the power plants, and addressing a green initiatives by each sponsor.
The outline of the agreement is as below. In addition, please refer to the appendix for the outline of thepower plants and the SPCs.
The SPCs and the six sponsors will contribute to increase the power generation from renewable energy
systems and to develop the local economy, with the understanding and support from local stakeholders.

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[Outline of the agreement]<Agreement - 1>
BorrowerAmount price
Purpose
Date of singing agreement
Date of performance of agreement

Agreement period
Finance arranger: Abashiri Biomass Power 2 LLC.
: 5.7 billion yen: Project fund
: June 27, 2022
: June 30, 2022
: 15 years and 3 months: Mizuho Bank, Ltd.

<Agreement - 2>
Borrower
Amount price
Purpose
Date of singing agreement
Date of performance of agreement

Agreement period

Finance arranger: Abashiri Biomass Power 3 LLC.
: 5.4 billion yen: Project fund
: June 27, 2022
: June 30, 2022
: 15 years and 3 months: Mizuho Bank, Ltd.

Note)
*1: A project by the companies or local governments that contribute to solving environmental problems.
*2: Estimated emission amount compared with electricity from current power composition.
*3: An international guideline for loan limited to environmental use, formulated in March 2018 by Loan Market Association(LMA) of United Kingdom, and Asia Pacific Loan Market Association (APLMA), which is a regional industry association ofAsia Pacific area headquartered in Hong Kong. In December 2018, The Loan Syndication and Trading Association (LSTA) ofUnited States has joined the guideline.

<Appendix> Outline of the project (as of June 27, 2022)<Reference> Map and Photos of the power plants (as of June 2022)

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<Appendix> Outline of the project (as of June 27, 2022)
1. Outline of the power plants
NameAbashiri Biomass 2nd Power Plant/ Abashiri Biomass 3rd Power Plant
Location

4-3 (2nd Plant)/4-1 (3rd Plant), Notoro-minato town, Abashiri City, Hokkaido

Land Area

2nd Plant: 23,743m3 / 3rd Plant: 23,162m3

Power Generation
SystemFuel

100% domestic wood chips made from woods in Hokkaido: 100%

Output Capacity

2nd Plant/3rd Plant each: 9,900kW (total of 19,800kW)

Annual Electricity
Production
Offtaker

156,810,000kWh(Equivalent to annual electricity consumption of approximately 47,000
households)
Hokkaido Electric Power Network, Inc.

Power Sales
Unit Price
Start of Construction

Fixed price by FIT for 20 years, approx. 30JPY/kWh of weighted average(Unutilized Wood 32JPY/kWh: approx. 75%, General Wood 24JPY/kWh: approx. 25%)
2nd Plant: September 2020 / 3rd Plant: May 2021

Operation
Commencement

Operator
EPC
Asset Management

Fuel Procurement
O&M

Steam power

2nd Plant: August 2022* (planned) / 3rd Plant: February 2023*
2nd Plant: Abashiri Biomass Power 2 LLC.
3rd Plant: Abashiri Biomass Power 3 LLC.
WIND-SMILE Co., Ltd.
Japex Green Energy Co., Ltd (100% subsidiary of JAPEX)TOKYO ENERGY & SYSTEMS INC. (in charge of the performance managementwork)
Nippon Paper Lumber Co., Ltd., WIND-SMILE Co., Ltd.
WOOD SMILE LLC (100% subsidiary of WINS)

Note) *Planned schedule of commercial operation commencement was changed from December 2022 to February 2023, due todisruptions of global logistics by Ukraine invasion and others.

2. Outline of the two SPCs
Company Name
2nd Plant: Abashiri Biomass Power 2 LLC.
3rd Plant: Abashiri Biomass Power 3 LLC.
Head Office
Representative
EmployeeSponsors*(Investment Ratio)

3-3-2, Notoro-minato town, Abashiri City, Hokkaido
Representative Partner: Japan Petroleum Exploration Co., Ltd.
Job Executer: ISHII Yoshitaka, Representative Director, Executive VicePresident
Japan Petroleum Exploration Co., Ltd. (JAPEX)
33.8%
MITSUBISHI GAS CHEMICAL COMPANY, INC.
33.4%
SMFL MIRAI Partners Company, Limited
20.0%
TOKYO ENERGY & SYSTEMS INC.
7.0%
WIND-SMILE Co., Ltd. (WINS)
5.1%
Nippon Paper Lumber Co., Ltd. (NPL)
0.7%

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<Reference>
Map around the Power Plants

Notoro Industry Complex

Photos of the Location (as of the June 2022)(2nd power plant)(3rd power plant)(Bird View of the Location)
2nd Power Plant

3rd Power Plant###4/4