Industrial boilers used mainly in factories today are fueled primarily by heavy oil and gas, and are required to switch to fuels such as hydrogen and ammonia, which do not emit CO₂ during combustion, in order to achieve carbon neutrality by 2050.
Among these fuels, ammonia is expected to be a decarbonized energy source that can be implemented in society on an early stage, since its transportation and storage technologies have been well established. However, further technological innovation is still required for the use of ammonia as a fuel, due to its difficulty in stable combustion at high temperatures and the need to reduce the amount of nitrogen oxides (NOx) emitted during combustion.

Based on the agreement, MIURA CO. and Chubu Electric Power will work on the development of a co-firing burner of city gas and ammonia and combustion tests using an experimental facility to be installed in Engineering Research & Development Division of Chubu Electric Power (Nagoya City, Aichi Prefecture). Furthermore, with the addition of Miraiz, the three companies will conduct market research and study product specifications, etc. for ammonia co-firing boilers with the aim of commercializing the product as soon as possible.

The three companies will contribute to the realization of a carbon neutral society by supporting customers' decarbonization efforts through decarbonization solutions for heat utilization processes in the industrial sector.

The following is an overview of issue conditions.

(*) From the standpoint of promoting initiatives to realize a carbon-free society and diversify financing, third chubu electric power green bonds limits use of procured financing to development of renewable energies and other environmental improvement projects.

Details

1 568th Corporate Bonds "Third Chubu Electric Power Green Bonds"

2 569th Corporate Bonds

Details

1. Background and purpose of the revision

At the 95th Ordinary General Meeting of Shareholders held on June 26, 2019, the introduction of the plan for the company's directors (excluding outside directors) was approved, and subsequently, at the Board of Directors meeting held on May 8, 2020, the Board of Directors resolved to add additional persons subject to the plan. Thereafter the determination of the maximum number of the company's shares to be granted to directors (excluding outside directors), and the revision of the trust amount (amount of compensation) in accordance with the change in the period of the medium-term management goal as well as the maximum number of the company's shares to be granted to directors (excluding outside directors) were approved, respectively, at the 97th Ordinary General Meeting of Shareholders held on June 25, 2021 and at the 98th Ordinary General Meeting of Shareholders held on June 28, 2022.
Upon approval at the Shareholders Meeting, Chubu Electric Power will transition to a company with an audit committee system. In order to further raise awareness for contributing to the enhancement of the Group's medium- to long-term corporate value, the company will submit the following proposals to the Shareholders Meeting: the addition of outside directors (excluding those who are members of the Audit and Supervisory Committee) and directors who are members of the Audit and Supervisory Committee to the eligible persons for the plan, the revision of the plan for directors (excluding directors who are members of the Audit and Supervisory Committee) in order to increase the ratio of stock compensation in the total amount of compensation, etc., and the introduction of the plan for directors who are members of the Audit and Supervisory Committee.

2. Details of the revision (underlines indicate the changes from the current plan)

(Note 1) Four fiscal years from the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2026 and every four fiscal years thereafter.

(Note 2) The maximum amount of additional contribution for the subject period starting from the fiscal year ending March 31, 2023 (hereinafter referred to as "the current subject period") will be 2,065 million yen, including 715 million yen for the company's directors (excluding directors who are members of the Audit and Supervisory Committee), of which 20 million yen for outside directors, and including 40 million yen for directors who are members of the Audit and Supervisory Committee, since the above revision will be made during the term.

(Note 3) The number of shares equivalent to the maximum number of points to be granted during the current subject period will be 1,790,000 shares (635,000 shares for the company's directors excluding directors who are members of the Audit Committee, of which 20,000 shares for outside directors, and 40,000 shares for directors who are members of the Audit Committee) because the above revision will be made during the term.

(Note 4) Chubu Electric Power Miraiz plans to submit a proposal for this revision to the 5th Ordinary General Meeting of Shareholders scheduled to be held on June 20, 2024.

In accordance with the Environmental Impact Assessment Act, a document on Primary Environment Impact Consideration for the project was sent to the Minister of Economy, Trade and Industry, the Governor of Aichi Prefecture, the Mayor of Shinshiro City, the Mayor of Shitara Town, and the Mayor of Toyota City on January 17, 2022.

However, as a conclusion of a detailed study based on the results of wind observation in the area where the project is planned to be implemented, it was determined that it would be difficult to ensure sufficient feasibility of the project, and today we submitted a notice of Abandonment of Class-1 Project to the Minister of Economy, Trade and Industry, the Governor of Aichi Prefecture, the Mayor of Shinshiro City, the Mayor of Shitara Town, and the Mayor of Toyota City in accordance with the Environmental Impact Assessment Act.

We would like to again thank the local community and all other stakeholders for their tremendous support and cooperation.

Both companies will continuously contribute to the realization of a decarbonized society through their efforts to expand renewable energy.

Then Chubu completed the acquisition procedures, namely a regulatory approval, and yesterday has officially acquired shares of the Project Company.

In December 2022, the consortium between Shell and Eneco acquired the concession right to operate the Project through public tender. The Project Company is planning to construct an offshore wind farm, which can supply 760MW to the Dutch power grid, and will start its commercial operation in 2026. This Project will implement various measures to promote harmony with marine ecosystems.

By participating in the Project directly, Chubu expects to acquire experience in the offshore wind power business from the beginning of the construction all the way to operation, as well as knowledge of Ecological Innovation. Chubu intends to apply the experience and knowledge gained through this Project to offshore wind farm projects in Japan and other countries.

In Chubu's global business, we will contribute to the realization of a decarbonized society and further increase earnings by building an optimal portfolio that combines the segments of (i) "Green Field" centered on renewable energy, (ii) "Blue Field" in relation to decarbonization, (iii) "Retail, power transmission and distribution, and new services" and (iv) "Frontier Field".

NEWGREEN is a group company of SHONAI Inc. (President: Daisuke Yamanaka, Location: Tsuruoka, Yamagata Prefecture). With the mission of "connecting Japanese agriculture with the global green market," NEWGREEN is an agricultural venture that develops and manufactures automatic weed control robots for paddy fields, supports production and distribution of organic rice and low environmental impact rice, as well as develops and sells agricultural materials using unutilized resources.

Domestic agriculture, most notably rice cultivation, is now facing a number of social issues, such as the aging and decline of farmers, the occurrence of degraded farmland, and the need to reduce emissions of greenhouse gases, such as methane.

NEWGREEN promotes a cultivation method in which seed rice is sown directly and cultivated without water basically until harvest, taking in water and nutrients from rainwater and groundwater through a medium such as mycorrhizal fungi to grow the rice.
The cultivation method saves labor for seedling cultivation, rice planting, and water management, which account for approximately 60% of the labor required in conventional cultivation, and significantly improves productivity, leading to the elimination of degraded farmland through farmland accumulation and intensification as well as the reduction of methane emissions close to zero by not applying water.

Based on this agreement, Chubu Electric Power, in cooperation with NEWGREEN, will begin a demonstration of the cultivation method in the Chubu area this fiscal year. After establishing a cultivation system over a large area through the demonstration, the company will promote full-scale cultivation from the next fiscal year onward, and expand the production bases through collaboration with producers while aiming to establish supply chains in Japan and overseas. In addition, the two companies will study the creation of new business models that combine the resources and services of each company.

Through the production of rice using this highly productive and decarbonizing cultivation method, Chubu Electric Power will build a food infrastructure to solve social issues in the agricultural sector thus contributing to the realization of a sustainable and livable society and the achievement of the SDGs.

<Reference> Overview of NEWGREEN

Based on the agreement, the two parties will leverage their respective knowledge and strengths to collaborate in solving regional issues and promoting and revitalizing the region, thereby contributing to the realization of a decarbonized society in the food and agriculture sector in Mie Prefecture.

1.Collaboration subjects in the agreement

(1) Actions toward the realization of a decarbonized society
(2) Promotion of energy solutions
(3) Development of sustainable agriculture
(4) Exercise of agricultural financial functions
(5) Other items that are consistent with the purpose of the agreement

[The signing ceremony of the agreement]

From left, Atsuhiro Horiuchi: Representative Director & Senior Managing Director, General Manager of Operations Headquarters, JA Mie Shinren
Yoshiki Mizuguchi: Executive Officer of Chubu Electric Power, General Manager of Project Promotion Department, Renewable Energy Company

2.Overview of agrivoltaics project

Today, the company decided to make an assisting intervention for the defendant in the lawsuit, and obtained the approval of all corporate auditors. Details are provided below.

1. Reason for the assisting intervention

Chubu Electric Power has made no agreement with The Kansai Electric Power Co., Inc. that restricts business activities, and there exists differences in fact-finding and legal interpretation with the Japan Fair Trade Commission (JFTC). The company has thus filed a revocation action (Press release issued on September 25, 2023), and has judged that the plaintiff's claim premised on the JFTC's finding is groundless.
The company has judged that it needs to appropriately counter the plaintiff's claims by getting involved in the proceedings of the lawsuit as an assisting intervenor, and demand a fair judicial decision.

2. Future response

Announcements will be made promptly in the wake of any additional matters that should be disclosed as to this lawsuit.

For details, please refer to the document "Chubu Electric Power Group's Initiatives for Achieving Medium-term Management Plan and Reevaluation of Management Targets".

In order to achieve carbon neutrality in 2050, factories and commercial facilities are required to convert their conventional fossil fuel to decarbonized fuels (ammonia, hydrogen, etc.). Among decarbonized fuels, hydrogen has a higher combustion temperature than ammonia, and also its use as a fuel for small boilers, engines, etc. is expanding.
Compared to hydrogen on the other hand, ammonia, since its transport and storage technologies are well established, is expected to play a role as a hydrogen carrier for transporting large quantities of hydrogen. Given these factors, we believe that the need for ammonia-derived hydrogen will increase in the future.

TOYO and Nippon Seisen have long been involved in the development of compact system to produce hydrogen from ammonia at customers' premises. Under this MOU, Chubu Electric Power and Miraiz will conduct market research and economic evaluation on the system, as well as study the technical requirements necessary for its commercialization. Taking these into account, TOYO and Nippon Seisen will proceed with this development, and the four companies will jointly conduct a demonstration test at the customer's premises, aiming for the first practical application of the system in Japan.

The four companies will contribute to the realization of a carbon-neutral society by facilitating customers' efforts to decarbonize their businesses through solutions to issues related to the further utilization of hydrogen.

1. Plaintiff

Three individual shareholders of the company

2. Defendant

(1) Four current directors

Satoru Katsuno, Kingo Hayashi, Hitoshi Mizutani, Takayuki Hashimoto

(2) Ten former directors

Akihisa Mizuno, Yoshinori Masuda, Akinori Kataoka, Chiyoji Kurata, Satoshi Onoda, Hiromu Masuda, Taisuke Misawa, Yaoji Ichikawa, Shinya Otani, Naoko Nemoto

3. Outline of the lawsuit

In relation to the Japan Fair Trade Commission ("JFTC") finding Chubu Electric Power to have committed conduct that violates Article 3 of the Antimonopoly Act which prohibits unreasonable restraint of trade ("the conduct"), the plaintiff demands the 14 defendants jointly pay a total of approximately 37.6 billion yen in damages as well as damages for delayed payment thereof by citing failure to maintain duty of care (e.g., negligence in being involved with or acquiescing in the conduct).

4. Public notice

Chubu Electric Power plans to issue an electronic public notice as follows:
Chubu Electric Power hereby gives public notice in accordance with Article 849, paragraph 5 of the Companies Act, as the company received notice of the shareholders' derivative lawsuit on April 19, 2024, filed by three individual shareholders at the Nagoya District Court (Case number: 2024 (wa) 694) against 14 current and former directors of the company, demanding compensation for damages.

5. Impact on business

Currently, the business of Chubu Electric Power has not experienced any major impact from the lawsuit.

6. Future response

Chubu Electric Power will consider its response to the lawsuit based on the content of the Lawsuit Notice.

Chubu Electric Power is developing and deploying healthcare services such as MeDaCa healthcare service and eFrail Navi, which detects people with frail conditions by analyzing electricity data and notifies local governments and community health nurses, etc., so that people can continue to live safely in their communities even as the birthrate declines and the aging population advances.

Welby has been a leading Personal Health Record ("PHR") service provider since 2011, offering a variety of PHR services such as "Welby My Chart" for patients with lifestyle-related diseases, and promoting social implementation of PHR in the public and private sectors through the activities of PHR Service Business Association, which Welby participated in establishing and serves as an executive officer.

The Suzuken Group supports the smooth sharing of patient information, etc. across occupational boundaries and facilities among the 200,000 medical and nursing care professionals who use the SNS "Medical Care Station," and also provides one-stop treatment support solutions that deliver information on digital services, products, etc. from collaborating companies to physicians and pharmaceutical companies through the "COLLABO Portal," a medical DX platform.

In the future, Chubu Electric Power together with Welby and Suzuken, aims to establish a system centered on Welby's PHR service that can provide a series of healthcare services to customers, medical institutions, and local governments by combining the services of the companies, and at the same time, the three companies will work together to provide new value through the creation of a "medical platform" by making maximum use of our contacts with customers and Suzuken's contacts with medical institutions and medical care providers.

Chubu Electric Power has been promoting various initiatives in the resource recycling business to realize "optimal recycling of energy and resources" and "safe and secure lifestyles," including biogas power generation to effectively utilize unused local resources (waste material), construction of plastic recycling facilities, and reviewing plans to upgrade waste treatment facilities in cooperation with the public and private sectors.

Under the slogan of Evoluting Green, Green Earth is developing resource recycling businesses related to plant resources, including a plant resource material recycling business (shredding, sorting, and selling chips of pruned branches and logged trees), a landscaping, civil engineering and logging business, and a slope protection business (multi-spread method), mainly in Chiba Prefecture. In addition, Green Earth has been selected by New Energy and Industrial Technology Development Organization (NEDO) for "Energy Forest Project," a project to demonstrate the development and use of new fuel potential (fast-growing trees, etc.) since 2023, and is engaged in research and development that will contribute to a stable supply of future decarbonized energy.

The two companies will further promote efforts to realize optimal recycling of energy and resources by mutually combining the Chubu Electric Group's knowledge and extensive network in the energy field and Green Earth's abundant experience and knowledge in recycling plant resources.

<Corporate Profile>

Chubu Electric Power Co., Inc.

Green Earth Co., Ltd.

The following is an overview of issue conditions.

Details

1 566th Corporate Bonds

2 567th Corporate Bonds

From November 17, 2023 to January 10, 2024, Chubu Electric Power called for research topics to introduce fresh perspectives in finding a wide range of technologies to further improve the safety and operations at Hamaoka Nuclear Power Station. (Press release issued on November 17, 2023)

A total of 42 themes were submitted from across the nation. Ten research themes have been subsequently chosen through a screening process involving an advisory committee of external academics and experts.

Please note that these transports are the current schedule and are subject to change.

1 New fuel

No plans for transportation

2 Spent fuel

No plans for transportation

3 Low-level radioactive waste

SWAT possesses the proprietary of advanced AI technology referred to as dynamic routing algorithm, which automatically creates efficient routes for people and goods with the minimum number of vehicles, and provides bus route traffic analysis systems, on-demand traffic operation systems, and logistics delivery optimization systems to nine countries worldwide, including Japan.

Through this capital and business alliance, Chubu Electric Power will accelerate the development of new solution services that combine the technologies and services of both companies, such as SWAT's algorithms and OPCAT of our optimal charging management system for commercial Electric Vehicles ("EVs"), in order to contribute to the decarbonization of society and customers through the spread of EVs toward the achievement of carbon neutrality by 2050.

The investment will be made from Chubu Electric Power Community Support Fund 2, a corporate venture capital established in November 2023 as an internal fund to speed up investment in venture companies with cutting-edge technologies and innovative business models as well as venture investment funds.

<Reference> Overview of SWAT

Kuwana City, as a basic municipality, has been working on various measures through public-private partnerships under the Kuwana Open Field concept, aiming to transform itself into a "smart city" that realizes civil services adapted to contemporary times, in order to fulfill its social role and mission to meet diversifying needs and realize the well-being of its citizens on a sustainable basis.
Chubu Electric Power, as a company rooted in the Chubu area and growing together with the region and society, is working to provide a variety of new services in addition to energy services, aiming to create a "new form of community" where people can enjoy a safe, secure, and convenient lifestyle, in order to continue to grow sustainably together with the customers.

Based on the agreement, the two parties will work together to study mainly on the following issues with the aim of realizing Kuwana City as a smart city.

1. Planning for a convenient and smart city connected by data
2. City development to achieve a decarbonized society
3. Community development utilizing local attractions
4. Other issues necessary to achieve the objectives of the agreement

Through the efforts based on the agreement, the two parties will accumulate know-how to respond to social changes and the unique characteristics of each region, enhance the well-being of citizens' lives, and contribute to the sustainable growth of the Chubu area as an advanced model.

(Note) A sustainable city that continues to create new value and solve various urban and regional issues through advanced management and the use of new technologies such as ICT.

(From left, Hisanori Ito, Executive Vice President and Director, Chubu Electric Power, and Narutaka Ito, Mayor of Kuwana City)

The Companies have decided to hire a total of 660 employees, both regular and career hires, in the recruitment plan for FY2025 in order to strengthen the management foundation and steadily implement each business plan toward the realization of Chubu Electric Power Group Management Vision 2.0 formulated in November 2021.

In light of changes in the business environment, such as the transition to a decarbonized society and the progress of Digital Transformation ("DX"), we plan to hire 445 regular employees (up 5 from the previous year) from the perspective of securing personnel over the medium and long term to simultaneously achieve our "unchanging mission" of delivering high-quality energy in a safe, affordable and stable manner and "creating new value" by solving regional and social issues.

Regarding career hires, we plan to hire 215 new employees (up 55 from the previous year), mainly to secure human resources with immediate skills to work in new growth areas such as renewable energy business including offshore wind power, further expansion of global business, and acceleration of DX promotion, as well as to diversify human resources and upgrade operations in management divisions such as human resources and accounting.

We will continue to promote our human resources strategy and achieve sustainable growth by utilizing the respective characteristics of regular and career hires to continuously and timely recruit the human resources needed for the growth and transformation of our group.

(Note) The recruitment plan for FY2025 consists of regular hires scheduled to join in April 2025 and career hires scheduled to join during FY2024.

[Number of planned hires]