2 February 2017
JFE Engineering Corporation
JFE Engineering Corporation (President and CEO: Hisanori Kanou, Head Office: Chiyoda-ku, Tokyo) has decided to start a joint energy supply business with Iwata City (Mayor: Osamu Watanabe), Shizuoka Prefecture. This is the first heat and electricity supply business in Japan with joint investment by a private sector company and a local public body. The new company will be established in April 2017.
With the trend toward liberalization of the electric power industry, JFE Engineering entered the retail electric power supply business through its subsidiary Urban Energy Corporation (President: Yoshihisa Kogasaka, Head Office: Yokohama, Kanagawa Prefecture), and is involved in the power generation business by solar, wind power and biomass power, etc. JFE Engineering also has an extensive track record in the construction of various types of electric power plants and district heating and cooling systems.
A proposal for heat and power supply by JFE Engineering found a good match in the policies of Iwata City, which is promoting the urban development to create an attractive city by strengthening the industrial capabilities of the region/creating employment and realizing a low carbon society, and this led to the agreement on this joint venture. Since Iwata Shinkin Bank (President: Hirohisa Takayanagi, Head Office: Iwata City, Shizuoka Prefecture) has also decided to invest in the project, high expectations are placed on the new company as an energy supply business with deep roots in the local community.
The recently-established joint venture will begin from a project in which electric power supplied by Urban Energy Corporation is sold to private sector facilities in Iwata City. Following this, construction of a gas engine power plant in a commercial and industrial district (Iwata LaLa City) on the north side of the Enshu Toyoda Parking Area on the Tomei Expressway and addition of heat supply to companies in the surrounding area, etc. to the scope of business is planned. In particular, tri-generation of heat, electric power and CO2 is scheduled at Smart Agriculture Iwata (nickname: SAC iWATA), which is a local greenhouse complex.
In the future as well, the JFE Engineering Group will actively promote locally produced, locally consumed energy supply projects which effectively utilize heat and CO2 generated during power generation, contributing to reduction of energy costs and environmental loads.
Corporation profile of joint venture company
|1. Name||Smart Energy Iwata|
|2. Address||Iwata City, Shizuoka Prefecture|
|3. Lines of business||Generation and retail sale of electric power, supply of heat|
|4. Capitalization||¥100 million|
|5. Date established||April 1, 2017 (planned)|
|6. Equity investors||JFE Engineering Corporation 94% (planned)
Iwata City, Shizuoka Prefecture 5% (planned)
Iwata Shinkin Bank 1% (planned)
Corporate profile of Urban Energy Corporation
|1. Company name||Urban Energy Corporation|
|2. Address||2-1 Suehirocho, Tsurumi-ku, Yokohama|
|3. Representative||Yoshihisa Kogasaka|
|4. Line of business||Retail electric power business|
|5. Capitalization||¥50 million|
|6. Date established||December 3, 2013|
|7. Equity investor||JFE Engineering Corporation (100%)|
For inquiries regarding this press release, please contact:
- JFE Engineering Corporation, Public Relations Section, General Administration Dept.