erex Co., Ltd.

Joint Test with Vietnam’s Vinacomin Power Holdings
Announcement Regarding the Start of the 2nd Unit’s Biomass Co-firing Test with
Coal-Fired Power to Achieve De-Carbonization

erex Co., Ltd. (Headquarters: Chuo-Ward, Tokyo; Representative Director and President: Hitoshi Honna; hereinafter referred to as the “Company”) is pleased to announce that the Company started biomass co-firing test (hereinafter referred to as the “Co-Firing Test”) by introducing biomass fuel (wood pellets) at the Cao Ngan Power Plant (57.5MW x 2 units) owned by Vinacomin Power Holdings (Headquarters: Hanoi, Vietnam; General Director & CEO: Bùi Minh Tân; hereinafter referred to as “Vinacomin Power”), a joint test with Vinacomin Power on December 20, 2025.

Wood Pellets for the Co-Firing Test

Coal and Wood Pellets Mixing

１．Background
Vietnam’s electricity demand is growing at an annual rate of approximately 10%, and the country relies on coal-fired power plants for approximately half of its power supply. Vietnam has also declared its goal of becoming carbon neutral by 2050, and its 8th National Power Development Plan calls for the country to start co-firing biomass and other fuels at coal-fired power plants that have been in operation for 20 years or more. Co-firing biomass fuels that can be procured domestically will contribute to reducing CO2 emissions and improving energy self-sufficiency rate.

The Co-Firing Test is being conducted based on the MOU on biomass co-firing with coal-fired power signed in September 2022 and the addendum to the MOU (signed on June 17, 2025), both signed with Vinacomin Power, a subsidiary of Vietnam’s state-owned Vietnam Coal Mining Group (Vinacomin)

From September to November 2025, the Company conducted Vietnam’s first biomass co-firing test at the Na Duong Power Plant, where biomass co-firing with wood chips at a co-firing ratio of up to 20% was implemented. The co-firing test at the Na Duong Power Plant provided the Company with insights into efficient biomass fuel transportation and other things.

２．Overview of the Co-Firing Test
The Co-Firing Test is conducted for one of the two 57.5MW units, and involves co-firing of up to 20% biomass. Wood pellets are used as fuel.

The Co-Firing Test was selected as subsidy recipient for the FY2025 Resource-Rich Country De-Carbonization and Energy Conversion Technology Support Program by the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry on March 11, 2025, and the subsidy was approved on April 15, 2025. The Co-Firing Test uses this subsidy.

３．Future Developments
With the result of the Co-Firing Test, the Company aims to start biomass co-firing business at coal-fired power plants in Vietnam from fiscal year 2026. Furthermore, through these activities, the Company will contribute to Vietnam’s goal of achieving carbon neutrality by 2050 and improving its energy self-sufficiency rate.

■The Company’s Overseas Business
The Company is promoting business developments toward de-carbonization, such as the construction of biomass power plants in Vietnam and Cambodia. The Company believes that this will not only contribute to the de-carbonization of both countries, but also to improving energy self-sufficiency rate and creating jobs.

【Major Initiatives of the Company’s Overseas Business】

■ Contact
erex Co., Ltd. / IR&PR Department
TEL：+81-3-3243-1167
E-mail：ir.info@erex.co.jp

Note:
This document is an English translation of the original Japanese language document and has been prepared solely for reference purposes. No warranties or assurances are given regarding the accuracy or completeness of this English translation. In the event of any discrepancy between this English translation and the original Japanese language document, the original Japanese language document shall prevail in all respects.