Press ReleasesCompletion of Biomass Power Plant Using 100% Unused Woody Material at Yatsushiro Mill- Commencing Business Operations from June, by utilizing of Abundant Forest Resources in Kyushu -

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter, "Nippon Paper Industries") has been proceeding with the construction of a biomass power plant that uses 100% unused woody material derived from sources such as thinning wood on the premises of the Yatsushiro Mill in Yatsushiro City, Kumamoto Prefecture. On this occasion we are pleased to announce that construction of the power generating facilities has been completed on schedule, with a completion ceremony held today. Business operations will commence from June, and the generated electricity will be sold to Kyushu Electric Power Co., Inc. (President: Michiaki Uriu) utilizing the feed-in tariff (FIT) system for renewable energy.

The unused woody materials employed in the new biomass power plant at the Yatsushiro Mill will take advantage of the mill's location in Kyushu, which is rich in forest resources. By leveraging the cargo collection networks of Nanei Co., Ltd. (President: Tatsuro Hamada; Head Office: Yatsushiro City, Kumamoto Prefecture), from which the Nippon Paper Group has procured wood materials for many years, as well as Nippon Paper Lumber Co., Ltd. (President: Masahiro Iwabuchi; Head Office: Chiyoda-ku, Tokyo), materials such as thinned wood produced in Kyushu will be used.

Nippon Paper Industries is committed to developing businesses that support the lives of people as a comprehensive biomass company shaping the future with trees. The biomass power generation project at the Yatsushiro Mill will leverage Nippon Paper Industries strengths, among them power generating technologies long developed through the paper manufacturing business and know-how relating to forestry business and lumber procurement, and contribute to running sustainable society.

The completed biomass power plant

Yatsushiro Mill Biomass Power Plant Overview

(1) Location

1-1 Jujomachi, Yatsushiro-shi, Kumamoto Prefecture

(Inside Yatsushiro Mill premises)

(2) Fuel

100% wood biomass chip derived from operations such as forest thinning

(FIT compatible, expected annual usage of approx. 70,000 tons)

(3) Power Generation Output

5,000 kilowatts (transmission end)

(4) Electricity Sold To Kyushu Electric Power Co., Inc.