KYOCY Kyocera Corporation (PK)

Companies exploring plan to construct and operate solar power project located on agricultural land on Ukujima island, Nagasaki, Japan

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) Kyudenko Corporation, and Mizuho Bank, Limited which have been jointly investigating the possibility of operating a maximum 480-megawatt (MW) solar power project on the island of Ukujima (Sasebo City, Nagasaki Pref., Japan) since June 2014, have announced that the project has entered a new phase with the inclusion of five other participants: SPCG Public Company Limited, Tokyo Century Corporation, Furukawa Electric Company Limited, Tsuboi Corporation, and The Eighteenth Bank Limited.

Photovolt Development Partners GmbH (hereafter “PVDP”) began planning the solar power project in April 2013 with the aim of helping to contribute to environmental protection and economic revitalization on the remote island. It has been agreed that the feed-in tariff (FIT) rights would be transferred from PVDP to the newly established special purpose company named “Ukujima Future Energy Holdings G.K.,” and it will restart as a new project. Approximately 200 billion yen (approx. USD1.80 billion*1) in investment is planned for the project, with a goal of starting construction in FY2019 (fiscal year ending March 2019). The project plans to utilize approximately 1,650,000 Kyocera high-output multicrystalline silicon solar modules to create a 480MW system that would generate an estimated 515,000MWh per year. By constructing a 64-kilometer undersea cable between Ukujima and the island of Kyushu, all power produced from the project will be sold to the local utility company, Kyushu Electric Power Co., Inc., based on the national FIT program for renewable energy.

Under the plan, a land management company would lease agricultural land or deserted arable land on the island from respective owners to then be subleased to a special purpose company named “Ukujima Future Energy G.K.” — a subsidiary of the Ukujima Future Energy Holdings G.K., to construct and operate the solar power systems. In this project, some of the solar systems would be constructed on stilts, allowing the land to be concurrently utilized for both power generation and agriculture.

In concurrence with the benefits of this project entering its next phase, Kyocera, Kyudenko, SPCG, Tokyo Century, Furukawa Electric, Tsuboi, Mizuho Bank and The Eighteenth Bank will continue to explore the project with the aim to achieve an environmentally friendly business model using solar power, while contributing to the development of the island’s agricultural base. As one of the participants of this project, SPCG is Thailand’s leading solar power project developers operating 36 solar power plants totaling 260MW on a land area of 2,000 acres, and the company has been collaborating with Kyocera since 2009.

The companies involved will work with the Nagasaki prefectural government, the city of Sasebo and authorities in the community to investigate the most appropriate business model and ensure that environment protection is considered in the selection of sites and construction of the solar power systems.

 

Project Overview

Project name   Ukujima Mega Solar Project (tentative name) Participant companies

(planned)

Kyudenko Corporation; Kyocera Corporation； SPCG Public Company Limited; Tokyo Century Corporation; Furukawa Electric Company Limited; Tsuboi Corporation; Mizuho Bank, Limited; The Eighteenth Bank Limited Power output

480MW

*The power produced from the project will be sold to the local utility company, Kyushu Electric Power Co., Inc.

Annual power generation

(estimated)

515,000MWh

Equivalent to roughly 173,000 typical households*2

Annual CO2 reduction Roughly 274,750t*3 Construction site (planned) Ukujima, Sasebo City, Nagasaki Prefecture, Japan (island area: approx. 24,930,000m2; population: approx. 2,000) Investment Approx. 200 billion yen (planned) Start of construction FY2019 (fiscal year ending March 2019)  

*1 For the reader’s convenience, based on an exchange rate of JPY111 = USD1 (as of January 11, 2018).*2 Based on an average annual use of 2,973.6kWh per household. Source: Japan Atomic Energy Relations Organization*3 Based on calculations derived from standards created by JPEA.

For more information about the Ukujima Mega Solar Project: https://global.kyocera.com/news/2018/1004_psij.html

About KYOCERA

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) (http://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of electronic devices, semiconductor packages, printers, copiers, mobile phones, solar power generating systems, cutting tools and industrial components. During the year ended March 31, 2017, the company’s consolidated net sales totaled 1.42 trillion yen (approx. USD12.7 billion). Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #522 on Forbes magazine’s 2017 “Global 2000” list of the world’s largest publicly traded companies.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180124005510/en/

KYOCERA Corporation (Japan)Natsuki Doi, +81-(0)75-604-3416Corporate Communicationswebmaster.pressgl@kyocera.jpFax: +81-(0)75-604-3516