June 21, 2022
The Okinawa Electric Power Company, Incorporated
Tsubame BHB Co., Ltd.
Kawasaki Heavy Industries, Ltd.

FY2022 Okinawa Clean Energy Introduction Promotion Research Program“Research Program on Onsite Production for Local Consumption of Clean FuelAmmonia in Okinawa"

The Okinawa Electric Power Company, Incorporated (OEPC), Tsubame BHB Co., Ltd.
(Tsubame BHB), and Kawasaki Heavy Industries, Ltd. (Kawasaki) jointly applied for theFY2022 Okinawa Clean Energy Introduction Promotion Research Program, which was publicly
solicited by Okinawa General Bureau, Cabinet Office of Japan, and our proposal, “ResearchProgram on Onsite Production for Local Consumption of Clean Fuel Ammonia in Okinawa,”
was accepted.
There is a strong need to reduce CO2 emissions from thermal power sources in Okinawa,and ammonia co-firing in coal-fired power plants is expected to be an effective means ofdecarbonization. In this research, we will investigate the feasibility and business viability of
onsite production for local consumption of clean fuel ammonia, namely ammonia production(“Onsite Production”) utilizing electricity derived from renewable energy and ammonia cofiring in coal-fired power plants (“Local Consumption”).
Specifically, we will conduct and complete the following studies in fiscal 2022:
1. Research on the possibility of ammonia co-firing in Gushikawa Thermal Power Plant(Onsite Production for Local Consumption)
2. Research on ammonia production and supply (Onsite Production)
3. Research on modification of ammonia co-firing equipment in Gushikawa Thermal Power
Plant
Through this research, OEPC, the largest electric utility in Okinawa, Tsubame BHB, which
has ammonia catalyst technology and is developing a distributed ammonia production system,and Kawasaki, a comprehensive heavy industry manufacturer that supplies energy-relatedequipment, transportation equipment, etc. and is developing ammonia co-firing technology
for coal-fired boilers, are committed to contributing to society by achieving a stable supplyof energy and tackling global warming.
Attachment: Outline of this ResearchReferenceCompany Profiles



The Okinawa Electric Power Company, Incorporated

Representative: Hiroyuki Motonaga, President

Incorporated: 1972

Head Office: Urasoe City, Okinawa Prefecture

Business Description: Integrated energy business through power and gassupply



Tsubame BHB Co., Ltd.
Representative: Masahiro Watanabe, Representative Director andChief Executive Officer

Incorporated: 2017

Head Office: Chuo-ku, Tokyo

Business Description: R&D and manufacturing involving on-site ammonia
production system and catalysts



Kawasaki Heavy Industries, Ltd.
Representative: Yasuhiko Hashimoto, Representative Director,
President and Chief Executive Officer

Incorporated: 1896

Head Offices: Minato-ku, Tokyo
Kobe City, Hyogo Prefecture

Business Description: Manufacturing and sales of land, sea and airtransportation systems, energy and environmental
plants, robots and industrial equipment, etc.

Outline of this research ①OverviewAttachment

Investigation of feasibility and business viability of introducing clean fuel ammonia throughthe following studies.
Joint Implementation

Implementation Structureand Main Roles

Okinawa General
Bureau, Cabinet
OfficeEntrustment

OEPC (Leader)①Research on the possibility of ammonia
co-firing in Gushikawa Thermal Power
Plant (Local Production for LocalConsumption)

Ammonia Production
Business Operator②Research on ammonia production andPower Plant
Equipment Supplier③Research on modification of ammonia co-Tsubame BHB

Kawasaki

Overview①②

Energy Supplier inOkinawa

supply (Local Production)

firing equipment in Gushikawa Thermal
Power Plant③

Ammonia Production (Local Production)

Ammonia Co-firing

Burner for Co-firing
Ammonia

Hydrogen

PV,Wind Power,etc.
Electricity derived fromrenewable energy

WaterElectrolyzer

Ammonia Production
Facility(Local Production)

Gushikawa Thermal
Power plant(Ammonia co-firing)1

Outline of this research ②OEPC Net-Zero CO2 Emissions Roadmap

Reducing CO2 Emissions
from Thermal Power Plants

Make Renewable Energy
as Main Power Source●Expansion of Renewable Energy
Introduction of Renewable Energy +100MW
PV-TPO business※1 ＋50MW(3.4 timesby current installation)
Large Wind Power※1 ＋50MWCO2 ▲26％

（compared to FY2005）

2040

2050

Maximum introduction of Renewable Energy

Expansion of the PV-TPO business
Expanding the introduction of large-scale Renewable Energy using
Storage Batteries●Grid Stabilization Technologies for Renewable Energy expansion

・Utilization and Advancement of Grid Stabilization Technologies using “Storage Batteries" and “Control Technologies”●Development of the infrastructure to support the mainstreaming of Renewable Energy
・Raising demand for Electrification for Effective Use of Renewable Energy
・Building and Utilizing VPP ※2 and DR ※3 with DX (Digital Transformation)
・Building a disaster-resistant "Renewable Energy Micro-Grid" for local production and consumption● Expanding the use of clean fuels

・Reducing CO2 with increased consumption of LNG
・Leveraging the mobility of LNG power sources to smooth・Conversion to CO2-free fuels
fluctuations in renewable energy output
・Introduction of CO2 offset technologies
・Consideration of introducing CO2-free fuels (hydrogen, To be investigatedammonia, etc.) and offset technologies
in this Research● Fade-out of the inefficient thermal power plants

PromotingElectrification

・Conversion of Oil to LNG. Lower carbon emission through theuse of Local Biomass in Coal-fired Power Plants
・Consideration of introducing cutting-edge technologies suchas next-generation thermal power

Net-Zero CO2 Emissions

2030

※4

Introduction of next-generation power sources using CO2free fuel conversion and CO2 offset technology inconjunction with the shutdown of existing machines

In addition to achieving a net zero structure on the power supply side, it is essential to promote electrification on the demandside(transportation, industry, business, household), implement necessary policies, and gain financial support.

※1 Service in which PV and storage batteries are installed free of charge and the electricity generated is sold to customers. Both PV-TPO and large wind power are scheduled to be built and managed by our affiliated companies.
※2 Virtual Power Plant (VPP) refers to the collective control and management of a number of small-scale renewable energy power plants, etc., to make them function as a single power plant.
※3 Demand Response (DR), according to the Ministry of Economy, Trade and Industry (METI), is defined as "an act of changing the consumption pattern of electricity for consumers to curb their use of electricity in response to the setting of electricity prices
or the payment of incentives when wholesale market prices rise or when grid reliability declines.“※4 We aim to Net-Zero CO2 Emissions by combining renewable energy power sources with thermal power sources that incorporate CO2-free fuels and CO2 offset technologies.
※This requires the establishment of necessary technologies along with economic feasibility. We will earnestly work to achieve these conditions. Further, policy and financial support are necessary for the development and introduction of advanced technologies.

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