JFE Engineering and TEPCO Fuel & Power agree strategic alliance for renewables
In Japan, JFE Engineering Corporation (JFEE) and TEPCO Fuel & Power Inc. (TEPCO FP), a subsidiary of Tokyo Electric Power Company Holdings, have concluded a Memorandum of Agreement to implement joint projects in the fields of renewable energy and utility infrastructure services for local governments. The agreement marks the first time that an engineering company and a power company have formed a strategic alliance in the field of utility infrastructure services beyond their respective industry.
According to a statement, both companies aim to expand their businesses into new areas. JFEE and TEPCO FP have since November 2016, carried out a wide-ranging study of the mutually effective utilization of management resources in the renewable energy market space given the prospect of a low carbon society and the privatization of municipal services in Japan.
Based on a combination of business management and operation and maintenance (O&M) know-how developed by TEPCO FP in the field of thermal power generation, and the engineering, procurement and construction (EPC) and O&M know-how of JFEE as a leading company in environmental plants, the two companies aim to create a value chain that extends from conversion of low carbon resources such as waste, sewage sludge and biomass into fuel to be used for energy and to develop businesses handling activities from the construction of municipal infrastructure, including wastewater treatment plants (WWTP), to O&M.
Concrete items to be studied for commercialization include:
- Waste management and recycling
- Conversion of sewage sludge to fuel
- Biomass power generation
- Infrastructure services for local government and others
The two companies are grappling with further strengthening of competitiveness and enhancement of corporate value, not only by growing their existing businesses, but also by expanding their areas of business, and are taking on the challenge of contributing to the solution of social problems such as global environmental problems, higher efficiency in maintaining/managing infrastructure in a period of decreasing population, and aging of municipal infrastructure.