We are pleased to inform you that Aichi Clean Energy Co., Ltd. has entered into a business agreement for the "Development and Operation of Sludge Treatment Facilities for Toyokawa Water Purification Center" with Aichi Prefecture, effective December 22, 2014. Aichi Clean Energy Co., Ltd. is a special purpose company established by METAWATER Co., Ltd. (Headquarters: Tokyo, Japan; President: Tomoyasu Kida), METAWATER SERVICE Co., Ltd. (Headquarters: Tokyo, Japan; President: Eiji Nakamura), and Cenergy Co. (Headquarters: Aichi, Japan; President and CEO: Tokihiko Yamada) in cooperation with Nakanihon Engineering Consultants Co., Ltd. (Headquarters: Aichi, Japan; President: Naokazu Ueda).

The Toyokawa Regional Sewerage is a regional sewerage system put into service in 1980. Amid the aging of the facilities and increasing changes in the social and economic environment, it is facing the urgent need to develop a more effective and efficient business operation. One of the most pressing issues is how to facilitate the environment-friendly recycling of sewage sludge which is generated in the process of sewage treatment. Under the project, the suspended digestion system of the Toyokawa Water Purification Center will be reactivated to maintain efficient water treatment while facilitating the stable treatment of sewage sludge. In addition, biogas generated in the process of sludge treatment will be used to generate power. The project will apply the renewable energy Feed in Tariff (FIT) scheme with the aim of reducing the sludge treatment cost and greenhouse gas emissions.

The project will be operated under the PFI (Private Finance Initiative: development of social infrastructure using private sector funds) scheme. This will be the first sewage business project in Japan to apply the PFI scheme which combines the renovation of sludge treatment facilities with the new construction of biogas utilization facilities. In addition, the sludge treatment facilities including the reactivation of the digestion system will be carried out upgrading and repairing of the facilities and then operated under the RO (Rehabilitate Operate) scheme engaging operation and management. Meanwhile, facilities to utilize biogas generated from sewage sludge will be transferred the ownership of the facilities to Aichi Prefecture after carrying out the development of the facilities, and then operated under the BTO (Build Transfer and Operate) scheme conducting operation and management.

1. Outline of the Project

(1)Project name

Development and Operation business of Sludge Treatment Facilities for Toyokawa Water Purification Center

(2)Project location

Toyokawa Water Purification Center (Nishihama-cho, Toyohashi-shi, Aichi)

(3)Contract amount

Approximately JPY 7,885 million (including tax)

(4)Project scheme

PFI
A.Sludge treatment facilities: RO (Rehabilitate Operate) scheme
B.Biogas utilization facilities: BTO (Build Transfer and Operate) scheme

(5)Project scope

A.Sludge treatment business: Design / construction* and operation / maintenance
*Design / construction includes repair subject to the government subsidies under the framework to support the extension of the lifespan of infrastructure
B.Biogas utilization business: Design / construction and operation / maintenance

(6) Project duration

From December 22, 2014 (the business signing date) to March 31, 2036
A. Design / construction of sludge treatment business: As needed
B. Design / construction of biogas utilization business: From December 22, 2014 to March 31, 2017
C. Operation and maintenance business: From October 1, 2016 to March 31, 2036

2. Outline of Aichi Clean Energy Co., Ltd.

(1)Date of Establishment

October 31, 2014

(2)Head Office

2-56, Suda-cho, Mizuho-ku, Nagoya-shi, Aichi

(3)Representative

President Hirosumi Watanabe (METAWATER Co., Ltd.)

(4)Capital

JPY 50 million

(5)Consortium company

METAWATER Co., Ltd. (representative company)
METAWATER SERVICE Co., Ltd.
Cenergy Co

(6)Supporting company

NAKANIHON ENGINEERING CONSULTANTS Co., Ltd.

3. Major Roles of Consortium and Supporting Companies

METAWATER Co., Ltd.: Design and construction of facilities
METAWATER SERVICE Co., Ltd.: Operation and maintenance of facilities
Cenergy Co.: Procedures and management related to the power generation business
NAKANIHON ENGINEERING CONSULTANTS Co., Ltd.: Development of a plan for extending the lifespan of infrastructure

Reference Information

Outline of processes