Notice of Conclusion of MOU for Biomass Fuel Business with Phu Yen Province, Vietnam

Notice of Conclusion of MOU for Biomass Fuel Business with Phu Yen Province, Vietnam
– Regarding the Development of Biomass Fuel Business and Power Generation Business –

erex Co., Ltd. (Head Office: Kyobashi, Chuo-Ward, Tokyo; Representative Director and President: Hitoshi Honna; hereinafter “erex”) is pleased to announce that it has signed a memorandum of understanding (MOU) with Phu Yen Province of Vietnam to promote long-term and mutually beneficial cooperation in the biomass fuel business as a renewable energy source involving development, procurement, processing and transportation, and biomass power plant business in general, at the Vietnam Investment Conference held on November 25 hosted by the Japan External Trade Organization (JETRO) and the Ministry of Planning and Investment of Vietnam.

On the occasion of the MOU conclusion, erex participated in the Japan-Vietnam Document Exchange Ceremony held at the “Vietnam Investment Conference” in the presence of Mr. Pham Minh Chinh, Prime Minister of the Socialist Republic of Vietnam and Mr. Koichi Hagiuda, Minister of Economy, Trade and Industry of Japan.

With its mission “Creating the future with new ideas and energy” and its 2030 vision “becoming a pioneer in the new era of electric power with renewable energy at its core”, erex aims to realize de-carbonized societies in Japan and overseas through renewable-energy-based businesses while pursuing economic rationality. erex approaches the reduction of energy costs from various perspectives, making full use of its accumulated know-how in biomass power generation business, fuel business, and others.

In Vietnam, which is experiencing remarkable economic developments, demand for electric power is increasing at a rate of 10% per year in line with economic growth and urbanization, and there are concerns about electric power shortages. Therefore, Vietnam is expanding the import of electric power from China and Laos, and is promoting the development of renewable energy.

This MOU of cooperation is aimed at expanding businesses between the two countries, including the establishment of a cooperative relationship in agriculture and rural development for businesses in Phu Yen Province involving the development, procurement, processing, and transportation of new sorghum as biomass fuel. This biomass fuel is characterized by its rapid absorption of CO2 due to its early growth, and its absorption and saving volumes are several times higher than other biomass fuels. It can also be grown on poor land due to its improved quality, therefore, there is no competition with food and no logging. New sorghum business also creates local employments.

erex will continue to proactively develop and provide various solutions such as biomass fuel business and biomass power generation business based on the deregulation of electric power industry, utilizing its expertise as a leading company in renewable energy.