Commencement of Development of Grid-Connected Battery Storage Facility in Sukagawa City, Fukushima Prefecture

JA Mitsui Leasing Co., Ltd. (President and CEO: Kyoyasu Matsumoto, hereinafter "JA Mitsui Leasing"), through its strategic subsidiary in the renewable energy field, JA Mitsui Energy Solutions Co., Ltd. (President: Shingo Akutsu, hereinafter "JMES") (collectively referred to as "JA Mitsui Leasing Group"), and Osaka Gas Co., Ltd. (President and CEO: Masataka Fujiwara, hereinafter "Osaka Gas"), have commenced the development of the grid-connected battery storage facility "Sukagawa Denchi-sho" (rated output 22MW, rated capacity 95MWh, hereinafter "this storage facility") located in Sukagawa City, Fukushima Prefecture, through Sukagawa Denchi-sho Godo Kaisha, a company jointly funded by both companies.

This marks the first joint investment in the grid-connected battery storage business by the JA Mitsui Leasing Group and Osaka Gas.

In recent years, with the expansion of renewable energy (hereinafter "RE") adoption, the necessity for battery storage that can complement the output fluctuations of RE has been increasing.

The grid-connected battery storage business involves connecting large-scale batteries to the power grid and performing charge/discharge operations according to the shortage or surplus of RE power. This contributes to the stabilization of the power grid and enables more effective utilization of RE.

At this storage facility, the JA Mitsui Leasing Group will primarily be responsible for business operations, funding, and project management, while Osaka Gas will leverage its expertise in power trading to contribute to the stabilization of the power grid by conducting transactions in three power markets (wholesale electricity market, supply-demand adjustment market, and capacity market).

The JA Mitsui Leasing Group has positioned "Evolution of Business Models" as a key initiative in its five-year management foundation strengthening plan "Sustainable Evolution," and identifies "Energy Transition" as a growth area. Moving forward, the group will continue to promote initiatives that contribute to the realization of a decarbonized society and the development of local communities in pursuit of a sustainable society.

The Daigas Group is advancing its efforts towards achieving carbon neutrality by 2050 under "Energy Transition 2050." In the battery storage business, it views this as a crucial field contributing to the widespread adoption of renewable energy and the stabilization of the power grid, aiming for a total battery operation scale of 1,000MW*1 by fiscal year 2030, including grid-connected and RE-co-located facilities.

Through the expansion of the battery storage business, the JA Mitsui Leasing Group and Osaka Gas will continue to contribute to the further widespread adoption of RE and the stabilization of the power grid, while also working towards the realization of a decarbonized society, which is a societal challenge.

*1: Includes decisions already made.

[Image of Sukagawa Battery Storage Facility]

Business Overview

Operator Sukagawa Denchi-sho Godo Kaisha

Storage Facility Name Sukagawa Denchi-sho

Location Sukagawa City, Fukushima Prefecture

Rated Output 22MW

Rated Capacity 95MWh

Battery Type Lithium-ion battery

Commercial Operation Start Fiscal Year 2028 (Scheduled)

Investors Main Roles JMES: Business operations, funding, project management Osaka Gas: Battery operation, power market trading

Company Overview

<JA Mitsui Leasing>

Company Name JA Mitsui Leasing Co., Ltd. Head Office Location 8-13-1 Ginza, Chuo-ku, Tokyo Ginza Mitsui Building Representative President and CEO Kyoyasu Matsumoto Capital 49,500 million yen Established April 1, 2008 Business Description Leasing business, installment sales business, various finance businesses, and other related businesses.

<JMES>

Company Name JA Mitsui Energy Solutions Co., Ltd. Head Office Location 8-13-1 Ginza, Chuo-ku, Tokyo Ginza Mitsui Building Representative President Shingo Akutsu Capital 366 million yen Established December 11, 2014 Business Description Investment in energy-related businesses, ownership, management, and operation of energy-related facilities, and power agency services.

<Osaka Gas>

Company Name Osaka Gas Co., Ltd. Head Office Location 4-1-2 Hirano-machi, Chuo-ku, Osaka City, Osaka Prefecture Representative President and CEO Masataka Fujiwara Capital 132,167 million yen Established April 10, 1897 Business Description Manufacturing and sales of gas, generation and sales of electricity, etc.

Inquiries from the Press:

JA Mitsui Leasing Co., Ltd. Corporate Management Department, Corporate Communications Office Phone: 03-6775-3002 MAIL: [email protected] Osaka Gas Co., Ltd. Public Relations Department, Press Team: Phone 06-6205-4515