Denka : Notice regarding the Construction of a New Hydroelectric Power Plant to Be Operated by Kurobegawa Electric Power

February 15, 2017 Denka Company Limited

Denka Company Limited (hereafter "Denka") hereby announces that Kurobegawa Electric Power Company (hereafter "Kurobegawa Electric Power"), its joint venture with Hokuriku Electric Power Company, has officially resolved to build a new hydroelectric power plant, to be named the New Himekawa No. 6 Power Plant. The construction of this facility has been under consideration since August 2014.

To be built alongside the existing Himekawa No. 6 Power Plant, the new power plant will draw on the abundant water resources of the Himekawa river system. It will have a maximum output of 27,500kW and is expected to generate around 85 million kWh of power annually. Denka will be entitled to a portion of electricity the plant generates, and plans on selling it on under the feed-in tariff scheme for the

20-year period following the start of operations. Construction is slated to begin in 2018 with transmission starting in April 2022.

Denka runs 15 natural inflow type hydroelectric power plants (including Kurobegawa Electric Power's five plants) in the area surrounding its Omi Plant in Itoigawa City, Niigata Prefecture. The combined maximum output of these plants is currently about 110,000kW. In line with our efforts to promote greater use of hydroelectricity, a form of clean energy that does not emit carbon dioxide, we are currently constructing the New Omigawa Power Plant in addition to the power plant mentioned above. This plant is expected to have a maximum output of 8,000kW and is slated to begin transmission in November 2019. At the new hydroelectric power plant that Kurobegawa Electric Power is promoting, Denka will adhere to its efficient use policy regarding water resources in line with its aim to help realize a low-carbon society through environmentally friendly corporate activities.

For more information about the construction of the new hydroelectric power plant, please visit Kurobegawa Electric Power's website: http://www.kurobegawa-denryoku.com (Japanese)

1. Name: New Himekawa No. 6 Power Plant

2. Location: Itoigawa City, Niigata Prefecture

3. Maximum output: 27,500kW

4. CO2 reduction: Approximately 50,000 tons of CO2 per year

5. Operational kickoff: April 2022 (scheduled)

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   Outline of Kurobegawa Electric Power Company

6. Tokyo Headquarters: 8-1, Toranomon 2-chome, Minato-ku, Tokyo

7. Establishment: October 20, 1923

8. Capital: ¥3 billion

   (Denka: 50%; Hokuriku Electric Power Company: 50%)

9. Facilities: Five

10. Combined maximum output: 66,900kW

11. (Utilized by parent companies in accordance with equity ratio.)

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    The New Himekawa No. 6 and Other Hydroelectric Power Plants Owned by Denka and Kurobegawa Electric Power

    References:

12. News release from December 1, 2014, entitled, "Exploratory Research for the Construction of a New Hydroelectric Power Plant Commences": http://www.denka.co.jp/eng/news/pdf/20141201_shinhimeroku_e.pdf

13. News release from October 17, 2014, entitled, "Groundbreaking Ceremony Is Held for New Hydroelectric Power Plant in Itoigawa City": http://www.denka.co.jp/news/pdf/20141017_shin_omigawah.pdf

    (Japanese only)

14. News release from January 20, 2014, entitled, "DENKA to establish a new hydroelectric power plant": http://www.denka.co.jp/eng/news/pdf/20140120_hydroelectric_eng.pdf

For inquiries:

CSR & Corporate Communications Dept. TEL: +81-3-5290-5511 E-Mail: csr-koho@denka.co.jp

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