A revision to the
utility law in April 1995 enables independent power producers to supply
electricity to electric power companies in Japan. We quickly responded
to this opportunity by forming wholesale power generation projects
at our Kobe and Kakogawa Works. The projects make full use of the
infrastructure, power generation technology, and environmental protection
technology already possessed by our facilities. We signed a supply
agreement with Kansai Electric Power, and in April 1999 we began the
commercial generation of 58,000 kilowatts of electricity from the
Kakogawa Works utilizing CDQ waste heat. At the Kobe Works, we are
now building a clean and safe urban power generation facility that
is slated to begin commercial operation in April 2002.
The Shinko Kobe Power Station being built at our
Kobe Works will have two plants with a total capacity of 1.4 gigawatts.
This huge output is equivalent to between 77% and 82% of the peak
power demand of the 1.7 to 1.8 million kilowatts used by the city
of Kobe. Since the new power station will be close to where the electricity
is consumed, the low transmission loss will save energy. This huge
construction project also helps to stimulate the local economy and
supports the nearby community.
The Kobe Steel Group is a global enterprise with businesses in metals, machinery, natural resources and engineering, construction machinery, and environmental solutions.