Oji Green Resources and Mitsubishi Paper form jv for biomass-based power generation

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Oji Green Resources and Mitsubishi Paper form jv for biomass-based power generation

March 28, 2016 - 22:26
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TOKYO, March 28, 2016 (Press Release) -Oji Green Resources Co., Ltd. (hereinafter “Oji Green Resources”), a wholly-owned subsidiary of Oji Holdings Corporation (hereinafter “Oji Holdings”) and Mitsubishi Paper Mills Limited (hereinafter “Mitsubishi Paper”) hereby announce that the companies have agreed to form a joint venture (herein after “the new company”) for the purpose of biomass power generation business and install a biomass power plant in the area of the Hachinohe mill of Mitsubishi Paper.

  1. Outline of the business of electric power generation

The new company will install a biomass power plant in the area of the Hachinohe mill of Mitsubishi Paper (Hachinohe City, Aomori Prefecture). The operation and maintenance of the power plant will be contracted to Mitsubishi Paper and the procurement service of biomass fuel will be mainly provided by Oji Green Resources. The electricity generated will be sold to electric power companies on the basis of Feed-in Tariff scheme for renewable energy. The business is scheduled to commence in June 2019.

  1. Outline of the new company

(1) Company name: MPM Oji Eco-Energy Co., Ltd.

(2) CEO: Satoshi Takuma (Executive director of Oji Green Resources)

(3) Main business: Operation and management of power plant and wholesale of electricity

(4) Location: Hachinohe City, Aomori Prefecture ( in the area of Hachinohe mill of Mitsubishi Paper )

(5) Incorporation: March 1, 2016

(6) Paid-in capital: 5 million yen

(7) Investment ratio: Oji Green Resources 55%, Mitsubishi Paper 45%

3.Outline of the power plant facility

(1) Installation site: in the area of Hachinohe mill of Mitsubishi Paper

(2) Capacity: 235 tons per hour (boiler evaporation capacity), ca. 75,000 kW (power generation capacity)

(3) Sales volume target: ca. 530 million kWh p.a.

(4) Sales amount target: ca. 11 billion yen

(5) Fuel: Woodchip, biomass such as PKS (palm kernel shell) and coal

(6) Investment amount: ca. 24 billion yen

APPENDIX

Outline of related parties

Oji Holdings Corporation

(1) Headquarters: 4-7-5 Ginza, Chuo-ku Tokyo

(2) CEO: Susumu Yajima

(3) Incorporation: August 1949

(4) Main business: holding company

(5) Paid-in capital: 103,880 million yen

(6) Sales: 1,347,281 million yen (consolidated, 2014)

(7) Number of employees: 33,668 (consolidated as of the end of March 2015)

Oji Green Resources Co., Ltd.

(1) Headquarters: 4-7-5 Ginza, Chuo-ku Tokyo

(2) CEO: Shoji Fujiwara

(3) Incorporation: October 2012

(4) Main business: pulp, wood products, plantation and energy business etc.

(5) Paid-in capital: 350 million yen

(6) Number of employees: 48 (as of the end of March 2015)

Mitsubishi Paper Mills Limited

(1) Headquarters: 2-10-14 Ryogoku, Sumida-ku Tokyo

(2) CEO: Kunio Suzuki

(3) Incorporation: April 1898

(4) Main business: Production, processing, and sale of paper, pulp, and photosensitive materials

(5) Paid-in capital: 32,756 million yen

(6) Sales: 214,944 million yen (consolidated, 2014)

(7) Number of employees: 3,622 (consolidated as of the end of March 2015)