Press Release Back Number(2007)

EDF Trading, Chubu Electric Form Coal Partnership

November 13, 2007
Chubu Electric Power Co., Inc.

Today Chubu Electric reached agreement with Électricité de France (EDF) subsidiary EDF Trading Limited (head office: London, CEO Philippe Torrion. Below, EDFT) to form a partnership in fuel trading*, with the primary objective to procure coal for the Hekinan Thermal Power Station.

The agreement marks the first such fuel procurement partnership between a Japanese electric power company and a Western energy trading business.

Under the partnership, Chubu Electric and EDFT, through a new Chubu Electric subsidiary, will supply coal to Chubu Electric starting in FY2008 and engage in trading coal with third parties in the Asia-Pacific market.

By tapping EDFT's expertise in risk management to engage in fuel trading, Chubu Electric's goal is to achieve the capacity for smooth and low-cost adjustments of volumes procured in the face of fluctuating fuel demand in international fuel markets increasingly characterized by commodification of market conditions.

By combining procurement of fuel through fuel trading in this partnership and Chubu Electric's own direct contracts with sellers, we will enhance our ability to procure fuel from world energy markets and be in a stronger position than ever to supply a stable and inexpensive flow of electric energy.


*Fuel trading
Engaging in both the sale and purchase of fuel, as opposed to engaging in only the purchase of fuel from sellers as in the past. Through transactions between sellers, traders and end users, we expect to enhance our procurement flexibility.


< Attachment >

1. Project overview


  • • Chubu Electric, EDFT sign agreement to form coal trading partnership
  • • Chubu Electric and EDFT each establish 100% subsidiaries in Japan (referred to respectively as Chubu Electric's subsidiary and EDFT's subsidiary) for the purpose of carrying out the partnership agreement
  • • Based on the following principles, Chubu Electric's subsidiary and EDFT's subsidiary will sign an association agreement and form an association (referred to below as the association) under civil law, for the purpose of engaging in fuel trading
    • • Through its subsidiary, Chubu Electric will provide the association with funds necessary to engage in fuel trading, and EDFT will provide expertise through its subsidiary
    • • Profits and losses resulting from the association's trading business will be allocated based on a pre-agreed formula

2. Overview of EDFT

(1) Head office:

London

(2) CEO:

Philippe Torrion

(3) Business areas:

Energy trading (coal, natural gas, electric power, carbon credits, etc.)

(4) Investment stake:

EDF 100%

3. Overview of new company established by Chubu Electric

(1) Trademark:

Chubu Energy Trading, Inc.

(2) Head office:

1, Higashi-Shincho, Higashi-ku, Nagoya , Aichi

(3) President:

Katsuji Noda (Managing Executive Officer of Chubu Electric and Manager of Fuels Department)

(4) Business areas:

Fuel trading

(5) Capital:

5.45 billion yen

(6) Investment stake:

Chubu Electric 100%

(7) Establishment:

December 2007 (planned)