International Business Strategy

  • To reinforce the management foundation in the future, Chugoku EPCO is working on overseas power generation projects by effectively using the technical knowledge and experience in overseas business operations that the company has accumulated through operations in Japan and overseas.
Targeted field
  • Not only green field project but also brown project are targeted.
  • From the perspective of the portfolio, we target various power generation projects such as coal-fired, gas-fired, hydropower and renewable energy (wind power, photovoltaic power etc.).
Targeted countries
and regions
  • Aim to work in countries where stable investment environments have been developed, such as a high possibility of organizing project finance based on long-term power purchase contracts rather than geographical locations.
  • Although there is no particular geographical limitation, it is mainly Southeast Asia, and North America and Europe are also targeted.
Investment ratio
and scale
  • Aim for an investment ratio that allows the dispatch of board members for a certain level of involvement in the management. 〔but no consolidated subsidiary〕

Case 1. Investment in Coal-fired Power Generation Project in Malaysia

  • We participated in coal-fired power generation project in Malaysia in March 2016. We have also dispatched employees from our company on-site since June of the same year.
  • We 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 in order to provide a stable supply of electricity in Malaysia and contribute to the realization of a low-carbon society.
Investors TNB (70%), Mitsui (15%), and Chugoku Epco* (15%)
Project Details Construction, operation and maintenance of a power plant
Installed Capacity Ultra super critical (USC) coal-fired power generation 2,000MW (1,000MW ▪ 2 units)
Start of Operations Unit No. 1: June 2019, Unit No. 2: December 2019
Offtaker and Period TNB (Malaysian electric power company) for 25 years
Total Project Cost Approx. 12 billion MYR (Approx. 320 billion JPY)

* through Chugoku Electric Power International Netherlands B.V.("Chugoku International")

Plant Location Plant Location Investment Scheme

Case 2. Investment in Natural Gas-fired Power Generation Project in the US

  • We participated in natural gas-fired power generation project in the US in May 2018.
  • This case is our first participation in the power generation business in the US.

Project Overview

Project Kleen Energy Systems, LLC
Installed Capacity Combined Cycle Gas Turbine (CCGT)
620MW
Start of operations July 2011
Market Wholesale power market in the northeastern United States

Investment Scheme

Investment Scheme

Plant Location

Plant Location Plant Location

Case 3. Investment in Energy Related Companies in China

  • We acquired shares of a power generation related company Gemeng International Energy Co. Ltd ”in China in 2009.

Company profile of Gemeng

Location People's Republic of China, PRC. Shanxi Province, Taiyuan City
Name Gemeng International Energy Co. Ltd
Date of
Establishment
April 2007
Shareholders and
ratio of shareholding
China Shanxi International Energy Group Co. Ltd.
(Shanxi province-owned company) ……47%
Korea Korea Electric Power Corporation (KEPCO) ……34%
Minority Shareholders Deutsche Bank  ……1%
Woori Sprott  ……8%
J Power  ……7%
Chugoku EPCO  …3%
Date of Establishment Each of the shareholders pool together their financial management, construction, operational technical knowledge in power generation and energy related field in the company`s investment in domestic and overseas energy related projects (power generation, coal mining etc.)
Capital 10 Billion Yuan(About 160 Billion Yen)  【Based on 2017 March exchange rate】

Subsidiary company of Gemeng (Huaguang Power Pte. Ltd.)

Location of Shanxi Province

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