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Kobe Steel to expand power supply business in Kobe

Submitting bid for electricity supply to Kansai Electric Power

April 25, 2014

Kobe Steel, Ltd. aims to grow its power supply business by expanding its coal-fired power station at its Kobe Works in Kobe, Hyogo Prefecture in western Japan. Kobe Steel intends to submit a bid for The Kansai Electric Power Co., Inc.'s tender later this year for thermal power generation.

Following the tender schedule, Kobe Steel will conduct detailed studies. The outline of the project is as follows:

1. Location of power station:

Within Kobe Works on land made available after the No. 3 Blast Furnace is shut down in November 2017

2. Type of power generation:

Pulverized coal-fired power generation. Ultra supercritical pressure power generation plant.

3. Capacity:

Maximum 1.4 million kW

4. Start of power supply:

Around fiscal 2021 to fiscal 2022

Kobe Steel has previously constructed a 1.4 million kW coal-fired power station at its Kobe Works. From Fiscal 2002, it began supplying Kansai Electric Power with electricity as a wholesale power business, which contributes to the stable supply of electricity to the city of Kobe.

Under the Medium-Term Business Plan launched in May 2013, Kobe Steel plans to shut down the blast furnace and other upstream operations at its Kobe Works as part of the measures to strengthen its steel business. To use the land made available after the shutdown, Kobe Steel began mulling the possibility of growing its power supply business by expanding the power station. With Kansai Electric Power's recent announcement that it would call for bids for the supply of electricity, Kobe Steel will conduct detailed studies for a construction plan to expand the power station.

Plans include installing highly energy-efficient equipment, as well as implementing high standards of environmental measures suitable for a power station located in an urban area. Kobe Steel aims to further ensure the stable supply of electricity and contribute to building a strong town that can withstand disasters by undertaking countermeasure construction work for earthquakes and tsunamis, as well as multiplying the power supply routes.

Kobe Steel asks for understanding and opinions from relevant authorities and the community as it proceeds with preparations for the environmental assessment to expand the power station.