Signing of Loan Agreement in Geretsried Geothermal Project in Germany

Chubu Electric Power Co., Inc. ("CHUBU"), together with Eavor Technologies Inc. and its German subsidiary Eavor GmbH (collectively, "Eavor"), is developing and constructing the Geretsried Geothermal Project in Bavaria, Germany (the "Project") to supply electricity and district heat through the project company Eavor Erdwärme Geretsried GmbH (Please refer to our press release issued on July 14, 2023).

The project company has now entered into a loan agreement for the project financing totaling at around 130 million euro with Japan Bank for International Cooperation, the European Investment Bank, ING Bank N.V., Tokyo Branch, and Mizuho Bank, Ltd. The financing portion of the commercial banks will be insured by Nippon Export and Investment Insurance.

This Project will use the Eavor-Loop Technology to drill four closed loops approx. 4,500-5,000 meters deep underground, circulating water in the closed loop to efficiently extract underground heat for electric power generated using an Organic Rankine Cycle (ORC) system, and for district heat supply. The construction activities have commenced and drilling of the first loop has started in July 2023, with partial commercial operations expected in 2024.

This Project is recognized as an innovative technology to achieve the transition to carbon neutrality and will receive 91.6 million euro grant from the EU Innovation Fund.

By participating in the Project, CHUBU will acquire experience and additional knowledge in the geothermal business. At the same time, CHUBU intends to consider the future applications of the Eavor-Loop Technology in Japan.

In CHUBU's global business, it will contribute to the realization of a carbon-free society and further increase earnings by optimally combining the four domains of (i) "green" business centered on renewable energy, (ii) "blue" business in relation to de-carbonization, (iii) "retail, power transmission and distribution, and new services" and (iv) "frontier" business.

Appendix

• [Outline of Geretsried Geothermal Project]