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News Release2016

Oct. 11, 2016

JGC Awarded a Biomass Power Generation Plant Construction Project in Muroran City, Hokkaido

Yokohama, Japan - JGC Corporation (“JGC”) has announced today that it has been awarded a lump-sum turn-key contract (the contract price was not disclosed) for the construction of a biomass power generation plant in Muroran City, Hokkaido planned by the Muroran Biomass Power Generation GK (“Client”) (Owners:TonenGeneral Sekiyu K.K. : 90%, JGC: 10%).  The Client is going to implement biomass power generation business, utilizing renewable energy feed-in tariffs, with an environmentally-conscious, high-efficiency biomass power generation plant which will be constructed in idle land owned by TonenGeneral Sekiyu K.K. The plant having a power generation capacity of 74.9 MW will be one of the largest biomass-fueled power generation plants in Japan. The proposed fuel is palm kernel shells.

In this project, JGC will be responsible for Engineering, Procurement and Construction services for the uploading of the fuel to be used, as well as its storage and transport, and the supply of other necessary equipment together with the power generation unit. Commissioning of the utility facilities and Commissioning Assistance for the power generation unit are JGC’s responsibility as well. The project is scheduled to be completed in autumn, 2019.

In its medium-term business plan, “Beyond the Horizon”, announced in May of this year, JGC stated its intention to expand its involvement in the fields of industrial and social infrastructure in addition to its long-standing activities in the field of oil and gas. JGC views this undertaking as an important step in speeding up the broadening of its business to include energy infrastructure and power generation. In addition, with the problem of global warming becoming increasingly important, JGC intends to deepen its involvement, both domestically and overseas, in the field of the operation business of renewable energy power generation plants and the construction of such facilities.

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