Press ReleasesNippon Paper Industries Holds Initial Firing Ceremony for Biomass Mixed Combustion Power Generation Facility at Ishinomaki Hibarino Power Plant- Commencing trial run prior to the start of business next March -

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter "the Company") held the initial firing ceremony for the power generation facility to advance unit trial operations with Nippon Paper Ishinomaki Energy Center Ltd. (President: Yoshiomi Todo; hereinafter "Nippon Paper Ishinomaki Energy Center") and other people concerned. Nippon Paper Ishinomaki Energy Center was set up in May 2015, and started the construction of the biomass mixed combustion power generation facility in December 2015.

Characteristically, Ishinomaki Hibarino Power Plant permits mixed combustion using wood biomass. Forest deterioration is a recent issue in Japan. To materialize a high biomass blending ratio, the Company seeks to contribute to the preservation of domestic forests by using unused woody materials mainly from Tohoku, including Miyagi. In addition, the Company will collect wood pellets from Asia and North America to further increase the biomass blending ratio.

The construction has progressed as planned. The power generation facility will enter into commercial operation next March after another trial run and testing of all of the facility. The Company wishes to contribute to industrial development in Ishinomaki, Miyagi, and the promotion of the use of wood biomass as well as the stable supply of electricity.

As a comprehensive biomass company "shaping the future with trees," Nippon Paper Industries aims to create new value. Ishinomaki Mill commenced the mass production of the new material, cellulose nanofiber, this April in addition to manufacturing printing/business communication paper. The Company will make more efforts to promote the regional economy through the power generation business based on mixed combustion using wood biomass.

  

 The biomass power generation facility       The initial firing ceremony

Outline of the Nippon Paper Ishinomaki Energy Center

(1) Company name

Nippon Paper Ishinomaki Energy Center Ltd.

(2) Location Ishinomaki City, Miyagi Prefecture
(3) Nature of business

Operation and management of electric power generation

facility and wholesale supply and sale of electricity

(4) Investment ratio

Nippon Paper Industries 70%

Mitsubishi Corporation Power Ltd. 30%

(5) Power output Generating end 149,000kW
(6) Fuel Coal, woody biomass (maximum 30%)
(7) Start of power generation March 2018 (planned)