28 February 2017
JFE Engineering Corporation
TEPCO Fuel & Power, Inc. (President: Toshihiro Sano, Head Office: Chiyoda-ku, Tokyo; hereinafter "TEPCO FP") and JFE Engineering Corporation (President and CEO: Hisanori Kanou, Head Office: Chiyoda-ku, Tokyo; hereinafter, JFEE) have concluded a memorandum of agreement to implement the joint project in the fields of renewable energy and utility infrastructure services for local governments.
The agreement marks the first time that a power company and an engineering company have formed a strategic alliance in the field of infrastructure services such as waterworks, sewerage, waste treatment, etc. extending beyond their respective industry.
Since November of 2016, TEPCO FP and JFEE, which aim to expand their new business areas, have carried out a wide-ranging study of mutually effective utilization of management resources in the renewable energy market in a prospect of a low carbon society and privatization of municipal services.
Based on a combination of the business management and O&M*1 know-how developed by TEPCO FP to date in the field of thermal power generation, and the EPCM*2 and O&M know-how of JFEE as a leading company in environmental plants, the two companies aim to create a value chain that extends from conversion of low carbon resources such as waste, sewage sludge, wood biomass, etc. to fuel, to generation of electric power, and to develop businesses handling activities from the construction of municipal infrastructure, including waterworks and sewerage, to O&M.
< Concrete items to be studied for commercialization >
(1) Waste management and recycling
(2) Conversion of sewage sludge to fuel
(3) Biomass power generation
(4) Infrastructure services for local government and others
The two companies are grappling with further strengthening of competitiveness and enhancement of corporate value, not only by growing their existing businesses, but also by expanding their areas of business, and are taking on the challenge of contributing to the solution of social problems such as global environmental problems, higher efficiency in maintaining/managing infrastructure in a period of decreasing population, and the aging of municipal infrastructure.
Operation and Maintenance; means operation/management and maintenance control of power plants and other facilities.
Engineering, Procurement and Construction; means a construction method in which the contractor handles the work from design to trial operation in an integrated manner in the construction of plants comprising diverse types of machinery and equipment.
Inquiries about this issue:
- JFE Engineering Corporation Public Relations Section, General Administration Dept.