May 20, 2016
Mizuho Bank, Ltd.
Solar Power Project in Minamisoma
Sumitomo Corporation (head office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura) will be implementing a solar power project (hereinafter, “the Project”) in the Migita/Ebi and Mano districts of the city of Minamisoma in Fukushima Prefecture via Solar Power Minamisoma-Kashima Co., Ltd. (hereinafter, “SPC”). A group of financial institutions assembled by Mizuho Bank, Ltd. (head office: Chiyoda-ku, Tokyo; President & CEO: Nobuhide Hayashi; hereinafter, “Mizuho Bank”) as the arranger will provide SPC with financing, while Toshiba Corporation (head office: Minato-ku, Tokyo; President & CEO: Masashi Muromachi; hereinafter, “Toshiba”) and Taisei Corporation (head office: Shinjuku-ku, Tokyo; President & CEO: Yoshiyuki Murata; hereinafter, “Taisei”) will be responsible for EPC (see Note below).
Expected to cost about 22 billion yen in total, the Project will entail erecting a mega-solar power facility with a generation capacity of 59.9MW as well as related facilities on a plot of land belonging to Minamisoma (approximately 110 hectares) affected by the Great East Japan Earthquake. Construction is already underway as of May 2016, and commercial operation is expected to begin in March 2018. The Project will generate the equivalent power usage of approximately 20,000 general households, and will utilize the fixed price purchasing system to provide electric power to retail power companies.
In October 2012 Minamisoma formulated the “Minamisoma Renewable Energy Promotion Vision” with the goal of having renewable energy provide for nearly 100% of the city’s power consumption in 2030. The Project is one important effort toward achieving this aim.
Sumitomo Corporation is actively engaged in developing and operating renewable energy power projects around the world, and its share in these projects encompasses a net generation capacity of 1,000MW. Sumitomo Corporation will continue striving to uncover and develop opportunities for its electric power business to undertake renewable energy projects and other quality infrastructure projects both in Japan and abroad.
Mizuho Bank as the arranger put together the project finance for the Project. As a mega-bank with 10 locations in the Tohoku region, Mizuho Bank has been assisting in the region’s reconstruction by providing funding for renewable energy power projects such as this one, financing reconstruction efforts and supporting sixth-order industrialization in the agriculture, forestry and fisheries industries. The Mizuho Group will continue mobilizing its full strength to support the disaster-hit areas.
Toshiba has positioned the energy business as one of its key business domains, and it has been involved with solar power systems and other renewable energy projects both inside and outside Japan. A characteristic feature of Toshiba’s solar power business is its ability to provide one-stop service from site selection to system construction. Toshiba is committed to pursuing products and services that meet wide-ranging needs for solar power systems and to helping rebuild disaster-hit areas.
Taisei has taken part in numerous rehabilitation/reconstruction projects since the Great East Japan Earthquake. Sharing responsibility for EPC in the Project, Taisei is dedicated to aiding local residents through renewable energy. For the purposes of the Project, it has developed a method for laying simple batter pile foundations (T-Root® method) for solar power mounts that should shorten construction time and reduce costs.
(Note) EPC: Engineering, Procurement and Construction
|Business company||:||Solar Power Minamisoma-Kashima Co., Ltd.|
Sumitomo Corporation Tohoku Co., Ltd.
|Arranger||:||Mizuho Bank, Ltd.|
|Project site area||:||Approx. 110 hectares|
|Scheduled start of commercial operation||:||March 2018|