News Release
Announcement Regarding Business Alliance in Renewable Energy Power Generation
Jun 18, 2013
TOKYO, Japan - June 18, 2013 - Kyuko Lease Inc. (hereinafter, "Kyuko Lease), a subsidiary of ORIX Corporation, Kyudenko Corporation (hereinafter, "Kyudenko"), and JFE Engineering Corporation (hereinafter, "JFE Engineering") announced today that they have formed a business alliance to jointly promote the renewable energy power generation business.
The three companies will promote the spread of renewable energy by combining their construction and operational know how in the power generation business.
As the first stage of their power generation business, the three companies have jointly invested to establish Kyushu Shine Energy Corporation and started the construction of Meishihama Solar Power Plant (Tamana Gun, Kumamoto Prefecture). This mega-solar power plant will have a maximum output of 1.7MW (1,728kW) and all of the electricity generated is scheduled to be sold to Kyushu Electric Power Co. Inc.
Kyuko Lease will be in charge of asset management and funding for the construction of this facility. JFE Engineering will be in charge for engineering, planning and construction and Kyudenko will be charge of operation and maintenance after its startup. Thus, the expertise of each company is combined to propel the business. The construction funds are scheduled to be raised through non-recourse loans from financial institutions.
The three companies aim to construct power plants with a scale of approximately 50,000kW (50MW) by fiscal year 2015, leveraging their sales network to promote the development of solar power plants in Kyushu and also nationwide. In addition, they will combine efforts to consider commercialization of geothermal and wind power generation and secure land suitable for those purposes.
Moving forward, the three companies will contribute to the preservation of the environment and development of local communities by active joint development of energy related business including the renewable energy.
| Company Name | Kyushu Shine Energy |
|---|---|
| Location | Tenjin 1-9-17, Chuo Ku, Fukuoka City, Fukuoka Prefecture |
| Business | Sale of electricity generated from renewable energy |
| Established | February 27, 2013 |
| Investors | Kyuko Lease (60%), Kyudenko (30%), JFE Engineering (10%) |
| Location | Tamana Gun, Kumamoto Prefecture |
|---|---|
| Power Generation Capacity (module capacity) |
1,728kW (1.7MW) |
| Installation Area | 18,178m2 |
| No. of Panels | 7,200 |
| Projected Annual Power Generation (Based on sales in first fiscal year) |
Approx. 1,820,000 kWh (Planned) Equivalent to the annual power consumption of approximately 500 ordinary households* |
| Construction Company | JFE Engineering Corporation |
| Commencement of Operation | September 2013 (Planned) |
* Calculation based on consumption of 3,600 kWh a year per household
Source: Electricity Statistics Information, The Federation of Electric Power Companies of Japan
■Artistic rendering of completed site
Contact Information
ORIX Corporation, Corporate Planning Department
TEL : +81-3-3435-3121 / Fax : +81-3-3435-3154
URL : http://www.orix.co.jp/grp/en/
About ORIX
ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 28 countries and regions worldwide, ORIX’s activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate, life insurance, banking and loan servicing. For more details, please visit our website at: http://www.orix.co.jp/grp/en/
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These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “4. Risk Factors” of the “Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2011– March 31, 2012.” |
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