Signing of Green Loan Financing Agreement for Abashiri Biomass 2nd &3rd Power Plants Project

Abashiri Biomass Power 2 LLC. and Abashiri Biomass Power 3 LLC. (hereinafter "the SPCs"), which are promoting the Abashiri Biomass 2^nd & 3^rd Power Plants Project (hereinafter "the project") in Abashiri City, Hokkaido, and its six sponsors of the project, which are Japan Petroleum Exploration Co., Ltd. (JAPEX), MITSUBISHI GAS CHEMICAL COMPANY, INC., SMFL MIRAI Partners Company, Limited, TOKYO ENERGY & SYSTEMS INC., WIND-SMILE Co., Ltd. (WINS), and Nippon Paper Lumber Co., Ltd. (hereinafter "the six sponsors") announced that the SPCs have signed a syndicate-type green loan financing agreement (hereinafter "the agreement") for promoting the project today.

The six sponsors, which are highly interested in carbon-neutral business such as the development of renewable energy power generation and the contribution to local economy, participate in the project by investing in the SPCs. The Abashiri Biomass 2^nd & 3^rd Power Plants (hereinafter "the power plants") have an output capacity of 9,900kW for each (total of 19,800kW), and use 100% domestic wood chips made from woods in Hokkaido as fuel. The power plants have been in construction since September 2020, aiming to commence commercial operation of 2^nd plant in August 2022, and 3^rd plant in February 2023. The six sponsors support the SPCs' works and have been entrusted with the specific works in the project from the SPCs.

With regard to the agreement, the project has acquired the conformity evaluation of the "Green Loan Principals" and the "Green Loan and Sustainability Linked Loan Guidelines of Ministry of the Environment" by Rating and Investment Information, Inc. (R&I), a third-party evaluation organization, based on the promotion as a green project, the CO₂ emission reduction effect of approximately 84,831tons a year, by supplying electricity from the power plants, and addressing a green initiatives by each sponsor.

The outline of the agreement is as below. In addition, please refer to the appendix for the outline of the power plants and the SPCs.

The SPCs and the six sponsors will contribute to increase the power generation from renewable energy systems and to develop the local economy, with the understanding and support from local stakeholders.

Outline of the agreement

Agreement - 1

• Borrower: Abashiri Biomass Power 2 LLC.
• Amount price: 5.7billion yen
• Purpose: Project fund
• Date of singing agreement: June 27, 2022
• Date of performance of agreement: June 30, 2022
• Agreement period: 15 years and 3 months
• Finance arranger: Mizuho Bank, Ltd.

Related News

• Press release on April 1, 2022 "New Sponsors Participate in Abashiri Biomass Power Generation Project"