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DBJ and Showa Shell Participating in Natural Gas-Fired Thermal Power Generation Project in Ohio
Development Bank of Japan Inc. (“DBJ”; President and CEO: Hajime Watanabe) and Showa Shell Sekiyu K.K. (“Showa Shell”; Representative Director, President, Executive Officer, CEO: Tsuyoshi Kameoka) have established a new joint venture in order to participate in a natural gas–fired thermal power generation project in Ohio (“the Project”) through the Project's holding company, South Field Energy (the “Company”).
The Company will construct a natural gas–fired combined cycle power generation plant1 with a generation capacity of 1,182 MW in Columbiana County, Ohio. The plant is scheduled to start commercial operation in 2021. The power produced will be sold on the wholesale electricity market in Ohio, coordinated by PJM Interconnection2, a regional transmission organization.
Kyushu Electric Power Co. Inc. and Shikoku Electric Power Co. Inc. will also participate in the Project and all Japanese investors will cooperate in constructing and operating the plant.
As the Project is to be undertaken in the United States, where electricity liberalization is more advanced, DBJ hopes to acquire the knowledge required of a financial business in a freer market and apply it to the rapidly liberalizing electricity market in Japan.
Showa Shell, in its Mid-term Business Strategy, has set the goal of participating in natural gas–fired power generation projects in the Asia-Pacific region, North America, and other overseas markets. While the Company has long experience in power generation in Japan, this project will be the first step toward achieving its goal of expanding into overseas markets. The United States has one of the most progressive wholesale electricity markets in the world. Showa Shell aims to apply the knowledge it obtains there for the benefit of the domestic market.
- A gas–fired combined cycle power generation plant uses both gas and steam together to produce power more effectively than traditional power generation plants.
- PJM Interconnection is an independent transmission organization coordinating the movement of wholesale electricity in the North-Eastern part of United States.
Outline of the Natural Gas–Fired Thermal Power Generation Project in Ohio1.Outline
|Project Holding Company||South Field Energy|
|Investors||Advanced Power, Showa Shell Sekiyu K.K., DBJ, Kyushu Electric Power, Shikoku Electric Power, NH Amundi, and others|
(Approx. 50 km northwest of Pittsburgh)
|Generation Capacity||Approx. 1,182 MW|
|Generation Method||Natural gas–fired combined cycle power generation|
（Gas turbine: GE）
|Start of Operation||2021|
|DBJ||Corporate Finance Department, Division 5||TEL：+81-3-3244-1620|
|Showa Shell||Public Relations Department Attn: Nanami Hayashi||TEL：+81-3-5531-5793|