ITOCHU Announces Mega Solar Power Business at Shin-Okayama Solar Power Plant

December 8, 2014

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it plans to construct a mega solar power plant (a large-scale photovoltaic power plant) on land in Okayama city, Okayama prefecture, and that it will commence the power generation business through an operating company established jointly with Fuyo General Lease Co., Ltd. and Ene One Solar Co., Ltd. (a joint venture of Saisan Co., Ltd. and Shinwa Energy Inc.). The operating company concluded a loan agreement pertaining to the project with a group of banks represented by Mizuho Bank, Ltd., which is the managing underwriter.

The planned plant is scheduled to be completed in December 2016, and will commence operation with an initial power output capacity of approximately 37,000 kW. Its average annual power output is expected to be approximately 43 million kWh, which is equivalent to the annual power consumption of approximately 7,600 standard homes. As a result, the plant will contribute to a decrease of approximately 26,000 tons of carbon dioxide per year.

The power generated by the plant will be sold to Chugoku Electric Power Co., Inc. for 20 years. ITOCHU will have a total power output capacity from renewable energy of approximately 480 MW in five countries, including this project. Through the project, ITOCHU will seek to contribute to the creation of a recycling-oriented society, while continuing its environmental conservation efforts, including prevention of global warming, by promoting its power generating business proactively based on renewable energy both in Japan and abroad.

Site for planned construction Okayama city, Okayama prefecture
Details of business Full developmental activity from development to power generation, and the sale of electricity to Chugoku Electric Power Co., Inc. for 20 years
Capacity Approximately 37,000 kW
Construction period

Construction is planned to commence in December 2014 and be completed in December 2016.

Investment ratio 50% for ITOCHU Corporation, 25% for Fuyo General Lease Co., Ltd., and 25% for Ene One Solar Co., Ltd. (a joint venture of Saisan Co., Ltd. and Shinwa Energy Inc.)
Contractors for construction Toshiba Corporation (for EPC) and Obayashi Corporation (for land development)