Today, The Chugoku Electric Power Co., Inc. ("Chugoku Electric") announced a plan to invest in a coal-fired power generation project in Malaysia with the signing of a share purchase agreement and similar agreements allowing Chugoku Electric to purchase 50% of the stock of 3B Power Sdn Bhd ("3B Power"), a wholly owned Malaysian subsidiary of Mitsui & Co., Ltd. ("Mitsui", Head Office: Chiyoda-ku, Tokyo, President & CEO: Tatsuo Yasunaga) through Chugoku Electric Power International Netherlands B.V.("Chugoku International", Head Office: the Netherlands, President and CEO: Koichi Maeda), a wholly owned subsidiary of Chugoku Electric.
Through 3B Power and together with Tenaga Nasional Berhad ("TNB"), a Malaysian electric power company, Mitsui has established Jimah East Power Sdn Bhd ("JEP"), a joint venture company that will construct and operate an ultra super critical coal-fired power plant in Malaysia ("this Project"). Chugoku Electric plans to provide an indirect 15% investment for this Project with the approval of the Malaysian government and TNB.
This Project is to newly construct and operate a 2,000MW (1,000MW x 2 units) ultra super critical coal-fired power plant, and to sell electricity to TNB under a long-term 25-year Power Purchase Agreement that JEP has signed with TNB. Chugoku Electric plans to invest in this Project, as well as maximize the usage of the accomplishments, experience and environmental technology the company has accumulated through the construction management and operation of coal-fired power plants such as the Misumi Power Plant in order to provide a stable supply of electricity in Malaysia and contribute to the realization of a low-carbon society.
Amidst the growing competition posed by other power companies due to the opportunities presented by the full liberalization of the retail sale of electricity in Japan occurring in April of this year, Chugoku Electric is assigning overseas projects such as this one the role of growth-oriented projects aimed at the future growth and development of the Chugoku Electric Group. Accordingly, Chugoku Electric will continue implementing measures to strengthen our earning capacity utilizing the knowledge of the electric power businesses we have accumulated throughout the history of the company by seeking out and actualizing other new foreign investment projects.