Japan Wind Development Co., Ltd. (Head Office: Minato-ku, Tokyo, President: Masayuki Tsukawaki) and Idemitsu Kosan Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Akihiko Tembo) are pleased to announce the conclusion between the two companies of a Joint Business Agreement (hereinafter referred to as "the Agreement") setting out policies for undertakings by both companies regarding renewable energy based on wind power generation business. Details of the Agreement are given below.
1.Purpose of Conclusion of the Agreement
Based on the strong awareness shared by both companies of issues relating to global environmental conservation and diversification of energy resources that constitute the prerequisites for the sustainability of the health and prosperity of mankind, both companies have made a thorough investigation into selection of themes to be undertaken within this collaboration as well as fields of business activities and directions. As a result, agreement has been reached between the two companies on concrete fields of business activities and directions based on the theme of expanding CO2-free energy supply through promotion of the development of wind power and other renewable sources of energy. Based on the Agreement, the next step will involve the realization and examination of each project.
2.Content of the Agreement
Policies and fields of business activities are itemized in (1) - (4) below.
(1) Domestic and Overseas Wind Power Generation Business
Both domestic and abroad, from the first phase of development including undertakings such as wind condition observation, the two companies will collaborate on the promotion of development and construction of power stations and, in the mid- and long-term, will consider shared operation of portfolios for power stations of substantial size.
However, because laws and regulations relating to wind power generation are fluid, elements such as regions where development will be undertaken as well as amounts and timing of investments will be carefully verified before decisions are made.
(2) Operation of Wind Power Stations with Storage Batteries
Concerning joint investment in and operation of wind power stations with storage batteries, electricity capable of output control generated by such power stations will be divided between the two companies on the tentative basis of investment shares and sold based on the corporate strategies of each company.
While the first joint investment project targets the Futamata wind power station (Kamikita-gun, Aomori Prefecture) belonging to the Futamata Wind Development Co., Ltd., a consolidated subsidiary of Japan Wind Development Co., Ltd., details are currently under consideration.
(3) Collaboration on Development of O&M* related Business
With the aim of increasing profitability of the power stations of which operating the two companies are involved , consideration is being given to the fusion of the maintenance technology and know-how of Japan Wind Development Co., Ltd., with Idemitsu Kosan's know-how in areas such as lubricants and equipment maintenance.
Additionally, entry into areas such as the reconstruction of unprofitable businesses and consulting is under consideration.
(4) Promotion and Development of Natural Energy Other Than Wind Power
Consideration will be given to the possibility of business collaboration in the introduction and promotion of natural energy other than wind power such as solar power generation, geothermal power generation, hydroelectric power generation, power generation from waves and biomass power generation.
* Operations and Maintenance (i.e. Operation and maintenance of power stations)
3.Future Outlook
Although details are not clear at the present time, prompt disclosure will be made of decisions taken as progress is made and other developments as they arise.
4.Corporate Profiles
[Japan Wind Development Co., Ltd.]
| Trade Name | Japan Wind Development Co., Ltd. |
|---|---|
| Representative | Masayuki Tsukawaki, President and CEO |
| Location of Head Office | 2-5-5 Shimbashi, Minato-ku, Tokyo |
| Date of Establishment | July 26, 1999 |
| Listing | The Tokyo Stock Exchange Mothers (Securities code 2766: Listed March 14, 2003) |
| Capital | 7.118 billion yen (As of end December 2008) |
| Sales Volume | 10.522 billion yen (As of end March 2008) |
| Number of Employees | 113 (As of end February 2009) |
| Business Summary | Construction of wind power stations and power generation |
[Idemitsu Kosan Co., Ltd.]
| Trade Name | Idemitsu Kosan Co., Ltd. |
|---|---|
| Representative | Akihiko Tembo, Representative Director and President |
| Location of Head Office | 3-1-1 Marunouchi, Chiyoda-ku, Tokyo |
| Date of Establishment | March 30, 1940 (Founded June 20, 1911) |
| Listing | The First Section of the Tokyo Stock Exchange (Securities code 5019: Listed October 24, 2006) |
| Capital | 108.606 billion yen (As of end December 2008) |
| Sales Volume | 3.864263 trillion yen (As of end March 2008) |
| Number of Employees | 7,503 (As of end March 2008) |
| Business Summary | Oil refining and production and sale of oil and fat, research, development and extraction of oil, coal, geothermal energy and other mineral resources. |
For inquiries regarding this press release, please contact
Mr. Yoshida
IR Financial Affairs Group, Administration Dept.
Japan Wind Development Co., Ltd.
Tel: +81-3-3519-7494
Ms. Iinuma
PR Section IR&PR Office
Idemitsu Kosan, Co., Ltd.
Tel: +81-3-3213-3115
