KYOCERA CORPORATION : KYOCERA, IHI, MIZUHO Corporate Bank Reach Basic Agreement to Build & Operate 70MW Solar Power Plant in Japan
04/10/2012| 01:10am US/Eastern
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New business model to be established with 25 billion yen investment
Kyocera Corporation (herein "Kyocera"), IHI Corporation (herein "IHI")
and Mizuho Corporate Bank, Ltd. (herein "Mizuho CB") today announced
that the three companies have reached a basic agreement to construct a
70-megawatt (MW) solar power plant in southern Japan and to further
explore a business model for utility-scale solar power generation. The
"mega-solar plant" is being built to help solve Japan's power supply
issues caused by the effects of the Great East Japan Earthquake, and to
make a contribution to environmental protection, including the reduction
of CO2 emissions.
To be built in Kagoshima City (Kagoshima Prefecture), the solar power
project is being undertaken by combining the strengths of the three
companies: Kyocera utilizing its more than 35 years of experience in the
solar business; IHI implementing its proactive stance on promoting the
increased use of renewable energy; and Mizuho CB applying its
wide-ranging finance knowledge.
Within the agreement, the Kyocera Group will be responsible for the
supply of 100% of the solar modules and part of the construction &
maintenance of the system; IHI will lease the land and actively
participate in the operation of the project; and Mizuho CB will devise a
financing plan for the project. Furthermore, a special-purpose company
will be established to undertake the business operation of the
mega-solar plant, with Kyocera planning to become the largest
shareholder. In the process of exploring the feasibility of the new
business, Kyocera and IHI have enlisted the support of and plan to get
cooperation for investment in the special-purpose company from KDDI
Corporation; Kyudenko Corporation; Kagoshima Bank, Ltd.; Takenaka
Corporation and others.
With the cooperation of the Kagoshima prefectural and municipal
governments and others in the local area, the companies seek to both
revitalize the local area, and through the spread of renewable energy
use, to contribute to the preservation of the environment and the
advancement of society.
The planned site of the solar power plant is approximately 1,270,000m2
(approx. 314 acres) of land owned by IHI -- roughly the same area as 27
baseball stadiums. The total project cost is estimated at approximately
25 billion yen (approx. 309 million US dollars*1), with
construction to commence in July of this year.
Plans for the plant include exclusive use of approximately 290,000
Kyocera multicrystalline solar modules, with a total capacity of 70MW,
becoming the largest officially announced solar power plant in Japan.
The planned 70MW of solar power generation is equal to almost 40% of the
total amount of public/industrial-use solar power equipment shipped
domestically in CY2011*2. The approximately 79,000MWh of
annual electricity generated will provide the equivalent power for
roughly 22,000 average households*3, and will help to offset
roughly 25,000 tons of CO2 per year*4.
Expectations and interest in solar energy have heightened to a new level
in Japan with the planned July 1 start of a revamped feed-in tariff
(FIT) program and the need to resolve power supply issues caused by the
effects of the Great East Japan Earthquake. Under these circumstances
the three companies have reached this basic agreement as they believe
that it is their corporate responsibility to proactively tackle
environmental problems.
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Solar Power Project Overview
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Project
name:
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Kagoshima Nanatsujima Mega-Solar Power Plant (tentative name)
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Participating
companies:
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Kyocera Corporation; IHI Corporation; Mizuho Corporate Bank, Ltd.
Planned
support from KDDI Corporation; Kyudenko Corporation; Kagoshima
Bank, Ltd.; Takenaka Corporation
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Power
output:
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70MW (largest in Japan, as of April 9, 2012; based on officially
announced projects)
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(The power generated is envisioned to be purchased by Kyushu
Electric Power Co., Inc. in line with the Japanese Bill on Special
Measures Concerning Procurement of Renewable Energy Sourced
Electricity by Electric Utilities)
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Location:
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2 Nanatsujima, Kagoshima City, Kagoshima Prefecture, Japan
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Area:
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1,270,000m2
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Total
investment:
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Approx. 25 billion yen
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Project
timeline:
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June 2012: Establishment of special-purpose company
July
2012: Start of construction
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Note: Project details may change depending on the final purchasing
price and conditions of the aforementioned Bill.
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Company Background
Kyocera
Based on the business rationale of "for the world,
for the people," Kyocera began R&D of solar energy in 1975. Since then,
the company has been continuously innovating upon its technology --
contributing to both the development of the solar industry and
protection of the environment. Kyocera holds the No.1 share of the
domestic public/industrial-use solar market*5. In particular,
where quality and reliability are of high importance, the company's
modules have been selected for the highest number of "mega-solar"
projects*6 and public school solar installations*7
in Japan, and its modules have also been used for a number of
utility-scale solar projects around the world. Furthermore, Kyocera was
the first manufacturer in the world to have its solar modules certified
by the third party organization TUV Rheinland's Long-Term
Sequential Test -- earning the company an excellent reputation for
its product quality and reliability.
IHI
The IHI Group seeks to solve various environmental,
industrial, social and energy related problems of the 21st
century by using engineering expertise to focus on manufacturing
technology -- to improve the competitiveness of products and services
offered by strengthening the capabilities required in development,
design, supply, manufacturing and construction. In striving towards
these goals, IHI is becoming a global enterprise offering safety and
security for the benefit of both the environment and humanity. The
company is participating in this mega-solar project to effectively
utilize its property in Kagoshima City towards these goals. IHI also
plans to use the area to experiment and verify other renewable energy
applications in addition to the mega-solar plant.
Mizuho Corporate Bank
As a financial institution, Mizuho CB
believes that it can make a large contribution to the field of
environmental preservation, and thus strives to address challenges
relating to climate change prevention and biodiversity conservation. On
top of proactively financing renewable energy projects including solar
thermal power, wind power and photovoltaic power generation, Mizuho CB
also applies the Equator Principles -- a credit risk management framework
for determining, assessing and managing environmental and social risk in
development project finance.
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*1
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For the reader's convenience. Based on an exchange rate of JPY81 =
USD1 (April 10, 2012)
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*2
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Calculated from quarterly figures compiled by the Japan Photovoltaic
Energy Association (JPEA)
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*3
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Based on an average use of 3,600kWh per household. Source:
Federation of Electric Power Companies of Japan
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*4
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Based on calculations derived from standards created by JPEA
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*5
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Based on research by Kyocera
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*6
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As of December 2011. Based on calculations from publicly announced
mega-solar projects. Source: Federation of Electric Power Companies
of Japan
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*7
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As of December 2011. Based on research by Kyocera from data compiled
by the Japan Ministry of Education, Culture, Sports, Science and
Technology regarding solar installations within the "School New
Deal" initiative
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About
KYOCERA
Kyocera
Corporation (NYSE:KYO)(TOKYO:6971) (http://global.kyocera.com/),
the parent and global headquarters of the Kyocera Group, was founded in
1959 as a producer of fine
ceramics (also known as "advanced ceramics"). By combining these
engineered materials with metals and plastics, and integrating them with
other technologies, Kyocera has become a leading supplier of solar power
generating systems, telecommunications equipment, printers, copiers,
electronic components, semiconductor packages, cutting tools and
industrial ceramics. During the year ended March 31, 2011, the company's
net sales totaled 1.27 trillion yen (approx. USD15.3 billion). The
company is ranked #604 on Forbes magazine's 2011 "Global 2000"
listing of the world's largest publicly traded companies.
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KYOCERA Corporation (Japan)
Judah Reynolds, +81-(0)75-604-3416
Corporate
Communications
webmaster.pressgl@kyocera.jp
Fax:
+81-(0)75-604-3516
© Business Wire 2012
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