Mitsubishi Corporation

Press Room

July 25, 2012
National Federation of Agricultural Cooperative Association
Mitsubishi Corporation

Solar Power Business Using Agricultual Facilities
- Installation of solar panels on the rooftop of JA Group's facilities -

      
The National Federation of Agricultural Co-operative Associations (JA ZEN-NOH) and Mitsubishi Corporation (MC)have reached an agreement to jointly promote the solar power business by using the rooftops of facilities owned by farmers around the country and JA group’s shared facilities (such as large livestock barns, sorting stations, logistics facilities, and food and beverage plants). Established within the framework of the Feed In Tariff (FIT) enacted on July 1st, 2012, this initiative seeks to reactivate the agricultural sector and revitalize farming communities as well as to expand renewable energy options in the furure.
 
JA ZEN-NOH and MC will establish a joint venture, tentatively named “JAMC Solar Energy Company”, which will set up the mechanism for facility owners to establish solar power businesses. The company plans to invest a total of JPY60 billion installing solar power systems of up to 200 thousand kW on JA group’s facilities in all prefectures from Hokkaido to Okinawa by the end of 2014. This is an epoch-making business scheme in that it establishes a nationwide solar power network, and will be one of the largest rooftop solar power businesses in Japan. Farmers or JA group entities that seek to establish their own solar power businesses will receive support from JA ZEN-NOH in the form of optimal solar components and lease products to be developed by financial institutions within the JA group.
※It is envisaged that some 400-600 locations of about 3,000-5,000m2 each will be established, with total area of about 43 times the size of Tokyo Dome.
 
Expanding renewable energy options and dispersed power generation sources is of increasing importance from three perspectives: as a measure against global warming; as a policy for energy security; and as a tool for managing natural disasters. Within this context, JA ZEN-NOH has made “aggressively working to protect the global environment” central to its management philosophy. Likewise, MC has established strategic business domains in the environment and infrastructure field, and both partners have since last year been discussing measures for addressing the current energy situation in Japan. Given Japan’s land space constraints, they came to the conclusion that making effective use of the roofs of existing facilities would be a very desirable way to enter the solar power business, while at the same time conserving agricultural land. Both MC and JA ZEN-NOH plan to continue developing new initiatives for making the renewable energy business a reality.
 
Through this business, JA ZEN-NOH will promote the introduction of renewable energy into agricultural facilities and support the revitalization of local communities while reinforcing agricultural business infrastructure. MC will take advantage of the broad experience and networks it has obtained through the trading of PV products, as well as its expertise in procurement, and notable track record in the solar power business to execute this initiative in partnership with JA ZEN-NOH.
                
Basic Concept of Rooftop Solar Power System    
Yearly power generation is expected to reach 210 million kWh, which is equivalent to the yearly consumption of 58,000 households. 
 
 
 [Reference]
1.Description of joint venture
(1)Name                 :        JAMC Solar Energy (Tentative)
(2)Establishment    :        2012.09.01 (Tentative)
(3)Description        :        Installation and O&M of PV systems, and settlement of income sales of generating                                                                 electricity to electric companies.
(4)Capital              :        JPY 2 billion
(5)Investors           :        JA ZEN-NOH 45%、MC 45%、JA Mitsui Lease10%
 
 
2.Description of related companies
(1)National Federation of Agricultural Cooperative Association
①Headquarte r        :        1-3-1 Otemachi, Chiyoda-ku, Tokyo
②Establishment      :        1972.03.30
③Capital                :        JPY115.3 billion
④Description         :        Provide production materials and daily necessities, and process and market                                                                                 agricultural products.
⑤Sales                    :        JPY6,086.3 billion (As of March 31, 2012, consolidated basis)
⑥Employees           :        8,310 (As of March 31, in 2012, unconsolidated basis)
⑦Representative      :        Chairman Yoshimi Nakano President Hitomi Narikiyo
 
 
(2)Mitsubishi Corporation
①Headquarter         :        3-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo
②Establishment      :        1950.04
③Capital                :        JPY203.3 billion
④Description        :        With six Business Groups which develop operations in the diverse fields of Industrial                                                                 Finance, Logistics & Development; Energy; Metals; Machinery; Chemicals;
                                            and Living Essentials, and two additional groups of Business Service Group and
                                           Global Environment & Infrastructure Business Development Group, MC serves customers
                                           around the world in virtually every industry
⑤Sales                  :        JPY19,233.4 billion (As of March 31, 2012, consolidated basis)
⑥Employees          :        5,795 (As of March 31, 2012, unconsolidated basis)
⑦Representative     :        President & CEO Ken Kobayashi
 
 
(3)JA Mitsui Lease
①Headquarter         :        2-10-2 Higashi Gotanda, Shinagawa-ku, Tokyo
②Establishment     :        2008.04.01
③Capital               :        JPY32 billion
④Description        :        Leasing, installment sales, financing, other associated business
⑤Sales                  :        JPY408.6 billion (As of March 31, 2012, consolidated basis)
⑥Employees         :        874(As of March 31, 2012, unconsolidated basis)
⑦Representative      :        President & CEO Yoshinori Yasuda