Kobe Steel enters into new power delivery contracts for after expiration of current contracts for Nos. 1 and 2 units of Kobe Power Plant

December 21, 2016

Kobe Steel, Ltd.

Kobe Steel, Ltd. today entered into power delivery contracts with The Kansai Electric Power Co., Inc. (or KEPCO) to continue supplying electricity after the current contracts expire for the No. 1 unit and No. 2 unit of the Kobe Power Plant operated by Kobelco Power Kobe, Inc. The current contract for the No. 1 unit ends in March 2017, while the contract for the No. 2 unit ends in March 2019.

Since the startup of the No. 1 unit in April 2002, the Kobe Power Plant has been providing KEPCO with a stable supply of electricity. The Kobe Power Plant’s No. 1 unit and No. 2 unit each have a generation capacity of 700,000 kW, or together a total of 1,400,000 kW. This large-scale power facility covers about 70 percent of the electricity required by Kobe City at peak times. The new contracts were concluded after discussion that began several years earlier with KEPCO, a company with which Kobe Steel can have long-term, stable business relations.

Outline of the contract

1.Contract partner:
The Kansai Electric Power Co., Inc.
2.Power plant:
Kobe Power Plant (No. 1 unit and No. 2 unit)
1,400,000 kW (700,000 kW x 2 units)

Under the Fiscal 2016-2000 Group Medium-Term Management Plan launched in April 2016, Kobe Steel has positioned electric power, along with materials and machinery, as one of three core business areas. In addition to the Kobe Power Plant, Kobe Steel is proceeding with new power plant construction projects in Moka, Tochigi Prefecture and Kobe, Hyogo Prefecture. When both projects begin operation, Kobe Steel will have a total power generation capacity of 3,950,000 kW.

Along with continuing steady operation at Kobelco Power Kobe, Kobe Steel is promoting new power generation projects to establish a more stable earnings base in the Kobe Steel Group.

Outline of Kobe Steel’s electric power business

Company /
project name:
(In operation)
Kobelco Power Kobe, Inc.
(Under construction)
Kobelco Power Moka, Inc.
(Under planning)
Kobe Works Thermal
Power Plant (provisional name)
Location: 2, Nadahama Higashicho,
Nada-ku, Kobe, Hyogo
(within Kobe Works)
15, Kinugaoka Moka, Tochigi 2, Nadahama Higashicho,
Nada-ku, Kobe, Hyogo
(within Kobe Works)
Fuel: Coal City gas Coal
Generation capacity: 1,400,000 kW
(700,000 kW x 2)
1,248,000 kW
(624,000 kW x 2)
1,300,000 kW
(650,000 kW x 2)
Power generation method: Pulverized coal-fired, supercritical pressure power generation (SC) Gas turbine combined cycle (GTCC) Pulverized coal-fired,
ultra-supercritical pressure power generation (USC)
Start of supply: No. 1 unit: April 2002
No. 2 unit: April 2004
No. 1 unit: 2H 2019
No. 2 unit: 1H 2020
No. 1 unit: FY2021
No. 2 unit: FY2022
Contract partner: The Kansai Electric Power Co., Inc. Tokyo Gas Co., Ltd. The Kansai Electric Power Co., Inc.

Kobe Power Plant, Kobelco Power Kobe, Inc.

Kobe Power Plant, Kobelco Power Kobe, Inc.

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