The Chugoku Electric Power Company and JFE Steel, a major steel company, planned to jointly build a natural gas-fueled thermal power plant in Chiba City, but decided to cancel it because it was not expected to be sufficiently profitable.
Chugoku Electric Power Co., Inc. and JFE Steel planned to build a natural gas-fueled thermal power plant on the premises of a steel mill in Chugoku-ku, Chiba City.
However, according to people familiar with the matter, the two companies have recently canceled the plan and decided to dissolve the company they co-founded for the construction of the power plant, which is expected to be officially decided soon.
Regarding this cancellation, both companies say that it is not expected to be sufficiently profitable, and it is thought that the background is that natural gas has a higher procurement cost than coal.
The power plant was originally planned to be fueled by coal.
However, four years ago, then Minister of the Environment Yamamoto submitted a written opinion to the Ministry of Economy, Trade and Industry, saying that it could hinder the achievement of greenhouse gas reduction targets, and urged measures including a review of the plan. It was being considered to use gas as fuel.