Mar 29, 2021

03/29/2021 | 02:02am EDT Message : Tokyo Stock Exchange 1st) RENOVA Acquired Equity Interest in limited liability company (Changes in subsidiaries) RENOVA, Inc. (hereinafter "RENOVA") announces today that it has decided to additionally acquire equity interest in Tokushima Tsuda Biomass Power Plant G.K. (Tokushima City, Tokushima Prefecture, installed capacity: 74.8 MW), an equity method affiliate of RENOVA that engages in the Tokushima-Tsuda Biomass Project (hereinafter referred to as "Tokushima-Tsuda Biomass" or "the Project"). Following the acquisition, RENOVA's equity interest in Tokushima-Tsuda Biomass becomes 60.8% (The share of dividends distributed from the project is 70.4%), making it a consolidated subsidiary of RENOVA. 1. Reason for acquisition of the equity interest With a mission of creating green and sustainable energy systems for a better world, RENOVA operates its power generation business based on locally entrenched renewable energy resources such as solar, biomass, wind, and geothermal power. Construction of Tokushima-Tsuda Biomass has been progressing steadily since the start of its design in March 2019. Foundation construction is currently underway, with commercial operations scheduled to commence in March 2023. In advance of full-scale construction activities on the site, we have chosen to acquire the equity interests held by some of our co-sponsors in the Project in order to further strengthen our commitment to the Project and accumulate know-how related to biomass projects. As a result of the acquisition, Tokushima-Tsuda Biomass became a consolidated subsidiary of RENOVA. As the lead sponsor of Tokushima-Tsuda Biomass, RENOVA will continue to work together with other co-sponsors of toward the successful commencement of commercial operations of the Project. 2. Overview of New subsidiary (1) Title Relationships between the listed (10) company and the relevant company Capital relationship There is no capital relationship that is required to be stated between RENOVA and NEC Capital Solutions Limited. In addition, no related parties or affiliates of RENOVA have any significant relationships with any related parties or affiliates of NEC Capital Solutions Limited. Personal relationship There is no personal relationship that is required to be stated between RENOVA and NEC Capital Solutions Limited. In addition, no related parties or affiliates of RENOVA have any significant relationships with any related parties or affiliates of NEC Capital Solutions Limited. Business relationship RENOVA and NEC Capital Solutions Limited jointly established and operate Karumai Sonbou Solar silent partnership business. United Renewable Energy Co., Ltd.,a consolidated subsidiary of RENOVA, has a senior loan from NEC Capital Solutions Limited. Status as related party NEC Capital Solutions Limited is not considered to be a related party of RENOVA. In addition, no related parties or affiliates of NEC Capital Solutions Limited are considered to be related parties of RENOVA. Mitsubishi Electric Credit Corporation