Overview of J-Power Biomass Activities

Hiroya Naramoto International Activities Department

Electric Power Development Co.,Ltd

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J-Power’s Overview (As of June, 2003)

Ü 50-year Electric Power Utility since 1952 (Main Shareholder

has been government but now under preparation of privatization .)

Ü Japan’s Biggest Wholesaler- Hydro power (59 plants) : 8,550.5 MW (2nd Largest Operator in Japan)

- Coal-Fired Thermal power (8 plants) : 7,824.5 MW (Largest Operator in Japan)

Total (67 plants) : 16,375.0 MW

- Trunk lines : 2,400 km (includes 267 km DC lines)

- Energy sales : 54,429 GWh

Capacity of Power Generation of EPCOCapacity of Power Generation of EPCO

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Tokyo

Kansai

Chubu

Kyushu

J-Power

Tohoku

Chugoku

Hokuriku

Shikoku

Hokkaido

Okinawa

MW

Nuclear

ThermalHydro

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New Business Fields (in Japan)

Ü RenewableWind :110MW

Waste :21MW(First RDF in JAPAN)

Ü New business fields

IPP :274MW (Vacuum residue,by-product from refinery)

154MW/134MW(CFB)

PPS :100MW/100MW(CCGT)

PFI(CHP) :12MW (First PFI in JAPAN)

Engineering Business:

(Supervising LPG and OIL under ground storage)

ESCO etc.

Under Development

30.6MW Second Largest wind farm in JAPAN

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J-Power’s Growth Strategy

Overseas JapanEnvironmental

Power Generation Business

Wind,Waste, Biomass

Engineering

Resource(Coal,Gas)/Trade

Now under developingIsogo 600MW

Ohma 1,380MW

Core Business(50years wholesale)8.5GW-hydro7.8GW-Thermal

Power GenerationRetail, Supply(IPP,PPS,PFI)

Engineering��������������

R&DIGFC,SOFC

Overseas Consulting40years experience

Overseas IPP Business(5years ; 3.4GW,200mUSD)

CDM and JI related

Business

Wind,Waste,Biomass

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J-Power’s Overseas Business

Philippines

��49MW Geothermal

��520MW Coal

India

China

��in operation

��under construction

��in development

�50MW Waste Coal

Thailand

�� 10MW Biomass��110MW Gas CHP��126MW Gas CHP� 121MW Gas CHP� 114MW Gas CHP��117MW Gas CHP��700MW Gas CCGT� 23MW Biomass(2 projects)��734MW Gas CCGT

Ø Commitment to the project line with total capacity of 3.4 GW and total investment of 200 million USD Ø J-Power has been expanding its operation in global market

Taiwan

�670MW Gas CCGT

Spain

�64MW Wind

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Innovative Company Culture and Likely Vocational and Challenging staffs

Ü RecordsØ High head pumped storageØ First imported coal-fired power plant in Japan after oil crisisØ First utility to equip DeSOx in Japan and DeNOx in the world

Ø Largest FBC(350MW) in the worldØ First DC transmission and submarine cable in JapanØ Large Wind Turbine Unit (1.75MW/Vestas) being installed

Ü Now challenging Ø IGFC (Coal-Gasifier combined with Fuel-Cell)Ø Sea-water pumped-storageØ Large Wind Turbine Unit (2 MW/Vestas) being planned

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Strength in Thermal Power Technologies

StokerÜrice huskÜwood

FBCPalm residue

CFBCRDF

P.C.FÜSub-critical

ÜSuper-critical

P-FBCIGCCgasification

IGFC

J-Power owns and operates various types of Plant !

CCGT

CoalTechnologies

Advanced Technologies

High Efficiency

ÜTechnologies which can be applied to WtE/Biomass

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J-Power’s Approach to Environmental IssuesÜ Background§ Crucial Responsibility as an Owner of Coal-Fired Thermal Power Plants of

Approx. 8 GW in Japan

Ü Method and Category of CO2 Credit Acquisition § IPP Type (with Investment)§ Credit Creation Type (with Investment)§ Credit Purchase Type§ Emission Trading

Ü J-Power’s Overseas Activities§ Waste Coal Power Plant in China§ Combined Heat and Power Plants in Thailand§ Wind Power Plants in Spain§ Geothermal Power Plant in the Philippines§ Afforestation Project in Australia and Ecuador§ Rice Husk Fueled Biomass Power Plant in Thailand§ Application of CDM to Rubber Wood Waste Fueled Biomass Power Plant in

Thailand (Finished pre-validation)

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J-Power’s Strength of Biomass/Waste to Energy

ÜRoi-Et Biomass Power Plant in ThailandØ Capacity : 10MWØ Fuel Type : Rice HuskØ Year of COD : May 2003 (Under Commercial Operation)Ø Total Cost : approx. 600 million THB (approx. 12 million EURO)

Ü Ohmuta Waste-Fueled Power Plant in JapanØ Capacity : 21MWØ Fuel Type : Waste (RDF:Refuse Derived Fuel of Solid Type)Ø Boiler Type: Circulated Fluidized Bed Combustion Ø Year of COD : Dec. 2002 (Under Commercial Operation)Ø Total Cost : approx. 10 billion Yen (approx. 72 million EURO)

ÜWaste to Energy Plan Consultant/ Advisory Services for Municipals

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And more… If CDM Approval proceeds...ÜYala Biomass Project : 23MW (Under Preparation)ØFuel Type : Rubber Wood WasteØBoiler Type: Grating StokerØChallenge to CDM : approx. 60,000 ton-CO2 per annum

(under Negotiation of Thailand Authority)ØJ-Power believes Yala Project contributes to Thai’s

sustainable development and long time benefits for the climate. Therefore it needs the CDM approvals due to financial reasons etc to promote this project.

Ü And We are planning a next Biomass project in Thailand.Ø23MW(Tentative) ,Para Splinters and Palm Shells

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Roi-Et Rice Husk Thermal Power Station

ÜProject Company: Roi-Et Green (EGCO (Thailand) and J-Power Own)ÜFuel : Husk Only ÜPlant type : Grating Stoker and ST ÜRevenue: Electricity Purchase: Power

Purchase Agreement in accordance with Thailand Small Power Producer Program for 21 years

Ü Ash: Plan to sell as a construction materials. (Under Negotiation)

ÜRG ÜEGAT ÜDistribution

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Roi-Et Rice Husk Biomass Project

ÜLocation

ÜBangkok

ÜRoi-Et (510km from Bangkok)

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Roi-Et Green PlantÜRequired Fuel : 270 ton/day

ÜGross 9.95MW, Net: 8.8MW

ÜSteam : 400 �, 39bar

ÜLocated next Rice Mill Company

ÜSommai Rice Mill

ÜRoi-Et Green Plant

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Roi-Et Project schemeEGCO

(Electricity Company in Thailand)

J-Power

EGCO Green Company

(Holding Company)

Sommai Rice Mill

Company

(Rice Mill Company

at Roi-Et)

Roi-Et Green Company

(Project Company)ESCO AE

(Fuel Supply Company)

Electricity Generating Authority of Thailand

Share 26%Share 74%

Share 5% Share 95%

Major Fuel Supply

Other Mill

Companies

Fuel Supply

Agreement

Power Purchase Agreement in Small

Power Producers Program

Technical

Advisory

Agreement

Loan

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Small Power Producer Program

ÜSPP program is the program that Electricity Generating Authority buys Electricity at special price from SPP Company

ÜPurposeØ To Promote the use of indigenous by-product energy

sources and renewable energy for electricity generationØ To reduce the financial burden of government investment in

generation and distribution. Etc…

ÜTargetØ non- conventional energy such as wind, solar,and minihydroØ Thermal Plant of Products derived from waste and residues

from agricultural and industrial process, or Garbage. Etc...

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Small Power Producer Program

ÜConditions (for Biomass Thermal P.S.)Ø SPP’s Plants must supply electricity during Peak month

(March to June) and total generating hours of a year are more than 4624 hours.

Ø Monthly Capacity Factor ( Monthly actual total kWh/Monthly Contracted kWh) must be more than 0.51

Ø In case of need, the Plant must be able to supply power in accordance with the Authority

Ø Plant shut down is required to meet the Authority’s condition.Ø ETC...

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Small Power Producer Program

ÜElectricity Revenue of SPP Company Ø Revenue consists of Capacity Payment and Energy

Payment.Ø Capacity payments is relative to the Plant Electricity Supply

Capacity (kW). The 80% of the price is linked with the US exchange rate. But in case of less than 0.51 of Monthly Capacity Factor, the Authority pays 50% of Contracted Capacity Payment to SPP Company.

Ø Energy Payments is relative to the actual net generation output(kWh)

Ø In general, Capacity Payments accounts for 30% to 40% of total revenue. Therefore SPP should enhance reliability of the Plant to increase Monthly Capacity Factor

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Our Further Activities of Biomass

ÜWe are just starting to proceed biomass projects.ÜTo begin with, we concentrate on

Thailand’s biomass projects.ÜIn near future, we are going to proceed

biomass projects in other Southeast Asia or East Europe combined with CDM/JI Project