21 August 2012

IHI Acquires Stake In Five California Power Plants From Exelon Corporation

Tokyo, Japan and Aliso Viejo, California – 21 August 2012 - IHI Inc., a US subsidiary of Tokyo-based IHI Corporation today announced on the acquisition of Chicago-based Exelon Corporation’s share of five California power plants – a total of 70 megawatts (MW) of generating capacity

The five California power plants include:
• Chinese Station (biomass) in Jamestown, in which IHI acquired a 9.9 MW share;
• Rio Bravo Fresno (biomass) in Fresno, in which IHI acquired a 12 MW share;
• Rio Bravo Jasmin (coal) in Bakersfield, in which IHI acquired a 17.5 MW share;
• Rio Bravo Poso (coal) in Bakersfield, in which IHI acquired a 17.5 MW share;
• Rio Bravo Rocklin (biomass) in Lincoln, in which IHI acquired a 12 MW share.

IHI acquired Exelon’s 50 percent stake in the four Rio Bravo power plants and 45 percent stake in the Chinese Station plant from Covanta Corporation.

IHI plans to hire all of the Exelon's O&M personnel at the 5 plants and the commencement of operations of IHI Power Services Corp. (“IPower”) as a O&M services provider in the US.

“This is an important step in establishing IHI as an owner and operator of renewable energy projects,” said Mikio Mochizuki, Executive Officer and CEO of IHI INC., the company formed to oversee the portfolio of five California power plants.

“These plants have an experienced workforce and a strong record of safe and efficient operation. This acquisition forms a solid a platform for IHI’s further expansion into the energy services business in North America, which is a key element of our global growth strategy.”

“This acquisition supports IHI’s strategy of building a North America an alternative energy generation portfolio with in-house operation and management capabilities,” said Stephen Gross, CEO of IHI Power Services Corp.

The Federal Energy Regulatory Commission designates the five power plants as “qualifying facilities,” a distinct class of commercial renewable energy generating facilities of 80 MW or less. All of the plants have power purchase agreements with investor-owned utilities.

Terms of the sale are not being disclosed.

IHI Corporation, established in 1853, is a multi-national leader in providing energy and chemical plants, physical distribution systems and steel structures, and a producer of heavy machinery. With annual net sales of nearly $13 billion (U.S. dollars) and more than 26,900 employees, IHI is a heavy industrial manufacturing and services company specializing in thermal and nuclear power systems, aero-engine and space technology, industrial machinery, shipbuilding and marine engineering.

Source: IHI