Following the amendment to the Electricity Business Act in 1995, which allowed companies other than electric power companies to sell electricity to electric power companies, we constructed a power plant in Kobe to embark on a new business that would make the best use of the existing infrastructure at the former Kobe Works and the know-how gained from in-house power generation in our ironmaking operations. We began the wholesale electricity supply business in fiscal 2002 in which all the electricity generated is provided to the Kansai Electric Power Co., Inc. We are one of the largest wholesale power suppliers in Japan, capable of covering approximately 70% of Kobe City's peak demand for electricity in summer. Located in an urban setting, the Kobe Power Plant has employed environmental equipment of the highest standards. In April 2016, the name of the operating company was changed from Shinko Kobe Power Inc. to Kobelco Power Kobe, Inc. to reflect the Kobe Steel Group's brand name KOBELCO.

The Moka Power Plant is Japan’s first full-fledged inland thermal power plant. Located adjacent to our Moka Works in Tochigi Prefecture, the Moka Power Plant began commercial operation of its No. 1 unit in October 2019 and its No. 2 unit in March 2020. Under a contract concluded with Tokyo Gas Co., Ltd. in September 2014, the power plant receives the supply of city gas from Tokyo Gas to generate electricity using state-of-the-art gas turbine combined cycle (GTCC) systems with the highest levels of efficiency in Japan. While most power plants are built in a coastal area, the Moka Power Plant is located in an inland area where there is no danger of tsunami. As higher security is expected with diversification of risk, the Moka Power Plant was selected by the Japanese government’s Cabinet Office and the Ministry of Economy, Trade and Industry as an example that contributes to building national resilience and national resilience for energy.