November 11, 2020

Sumitomo Heavy Industries, Ltd. (Representative Director, President and CEO: Shinji Shimomura) has established a joint venture with Kajima Corporation (President and Representative Director: Yoshikazu Oshimi) to secure an order from Morinomiyako Biomass Energy G.K. for a 75 MW class 100% biomass-fired power plant (Output: 74,950 kW, planned construction location: Sendai-shi, Miyagi Prefecture). Morinomiyako Biomass Energy was jointly established by RENOVA, Inc. (Founding CEO: Yosuke Kiminami), UNITED PURPOSE MANAGEMENT INC. (CEO: Hisaki Hirano), Sumitomo Forestry Co., Ltd. (Representative Director, President and Executive Officer: Toshiro Mitsuyoshi), Mizuho Leasing Company, Limited (President and CEO: Shusaku Tsuhara), and RenoDa Partners G.K. (*1)
This power plant is a high-efficiency 100% biomass-fired boiler facility, which uses wood pellets and palm shells as its primary fuels, utilizing a reheat system (*2). In consideration to the environment of the surrounding areas, the plant will apply air-cooled condensers as well as denitration and desulfurization facilities, aiming at reducing the volume of waste water and the amount of exhaust gases.
The power generation facility utilizes Circulating Fluidized Bed (CFB) boiler technology for which our group has a track record of over 500 boilers globally (*3). Our CFB boilers command a high market share in the field of high-efficiency biomass power generation. The same type of biomass-fired power generation facilities has been delivered to the owners of this plant, RENOVA, UNITED PURPOSE MANAGEMENT, and Sumitomo Forestry and have been operating successfully. We consider that it was the recognition of such a track record that led to the successful order ofthis plant.
Our company will continue to pursue excellent fuel diversity in CFB boiler technology with the aim of alleviating the burden on the global environment and ensuring stable electricity supply. To this end, we provide high-efficiency power generation facilities, which contribute to the efficient use of resources and the reduction of environmental load.

[Overview of Facility]
Boiler Type : Circulating Fluidized Bed (CFB) Boiler (Reheat System)
Power generation output : Approx. 74,950 kW
Fuel : Wood pellets and palm shells
Scheduled Commercial Operation Date : November 2023

(*1) Limited Liability Company invested by the Daiwa Securities Group.
(*2) Reheat system: In this system, the steam that expands inside a steam turbine is re-sent into the boiler. By re-heating and re-sending the surplus steam into the steam turbine, high-efficiency power generation is achieved.
(*3) Our group: Sumitomo Heavy Industries, Ltd. and our subsidiary Sumitomo SHI FW (SFW).
This value also includes CFB boiler licensees of SFW.