Sumitomo in Power Generation Project in Australia

Apr. 10, 2009 - Sumitomo Corporation (head office: Chuo-ku, Tokyo; President and CEO: Susumu Kato) has acquired 70% stake in the project company which owns and operates the Kwinana power plant in Australia. It is our first opportunity to participate in power generation project in Australia. Kwinana power plant is 320MW natural gas fired combined cycle power plant which is located nearby Perth, Western Australia It has been in good operation since its commissioning in November 2008. Power produced in Kwinana power plant is sold to Synergy, WA government owned retail power company, based on long-term off-take agreement. The project company stake was originally owned 70% by Babcock & Brown Power Ltd (hereinafter referred to as "BBP") and 30% by ERM Power. Sumitomo acquired the 70% stake which was originally owned by BBP through Summit Southern Cross Power Pty Limited (head office: Sydney, Australia), which is the holding company totally owned by Sumitomo. In Australia, secure economic growth and continuous increase of power demand is expected. Sumitomo will continue to seek opportunity to expand our business to accumulate good power assets in Australian market.