Japan’s First! Optimization of Energy from Procurement to Supply
at All Production Bases of The Nisshin OilliO Group, Ltd. Nationwide
– 17% Reduction of CO2 Emissions and Reform of Cost Structure –

13 October 2017
The Nisshin OilliO Group, Ltd.
JFE Engineering Corporation

The Nisshin OilliO Group, Ltd. (President and Representative Director: Takahisa Kuno; Head Office: Chuo-ku, Tokyo; hereinafter, Nisshin OilliO) and JFE Engineering Corporation (President and CEO: Hajime Oshita; Head Office: Chiyoda-ku, Tokyo; hereinafter, JFE Engineering) have reached a basic agreement to implement “Optimization of Energy from Procurement to Supply at All Production Bases of Nisshin OilliO.”

From an early date, Nisshin OilliO has grappled with energy saving activities and expansion of the privately-owned power generating facilities at all of its bases, with the aims of securing a stable supply of electric power and reducing loads on the environment. JFE Engineering is actively involved in the on-site energy service *1 business utilizing cogeneration systems *2 and renewable energy. Recently, the two companies cooperated in carrying out a study on “System for Energy Accommodation at the Company-wide Scale.” As a result of a fundamental review of the energy system at Nisshin OilliO from procurement through supply, the companies reached an agreement, as follows.(Content of agreement)

-JFE Engineering will install cogeneration systems at Yokohama Isogo Plant and Nagoya Plant, which are production bases of Nisshin OilliO, and provide on-site energy service.
-JFE Engineering will also perform flexible electric power sharing (energy accommodation) for other production bases of Nisshin OilliO (Sakai Plant, Mizushima Plant) utilizing the power obtained by the above-mentioned service, and its owned power sources and/or power transmission network. This will secure a stable supply of electric power for all of the production bases of Nisshin OilliO.

This is the first effort of its type in Japan, in which an energy service provider performs optimization of all energy activities from procurement through supply simultaneously for production bases located through country.
As effects of this effort, Nisshin OilliO expects to be able to reduce CO2 emissions by approximately 17% (in comparison with FY 2015), and realize reform of its cost structure, also making it possible to reduce energy procurement costs.
A future expansion of this service to other production bases, offices, etc. of Nisshin OilliO including its group companies is also under study.

Nisshin OilliO’s aim is to make efforts that are one step ahead of environmental problems and “create a sustainable society” by continuously implementing various energy measures in the future. JFE Engineering is not only active in the energy field, but is also a “one stop” provider of total solutions suited to the client’s needs.

*1Service in which the energy service provider installs power supply equipment at the client’s site and supplies energy in the forms of electricity and heat. In general, the energy service provider owns the equipment, purchases fuel and is responsible for operation and maintenance. This system is used as outsourcing of the energy procurement process.
*2System which enables direct use of heat produced during power generation as energy. Energy saving is possible because energy is used without waste.

Conceptual image of Nisshin OilliO energy system from procurement to supply

For inquiries regarding this press release, please contact:
JFE Engineering Corporation, Public Relations Section, General Administration Dept.