Committing to
tackling global
societal issues
Creation of new
business models and
reforms to business
composition
Disruptive
innovation
Communication
with the regionFuelprocurement
Energy
services
Power
generation
Power
transmission
and distribution
New business
development
projects
Identifying
issues that are
closely related
to the region
Co-existence
and co-creation
with the region
Strategic
investment
and risk
management
Contributing to
resolving global
societal issues
Building a
sustainable
community together
Developing the
energy service
business
By seamlessly integrating the three drivers and maximizing synergies,
we will achieve sustainable growth for both the Kyuden Group and
society.
In addition to working on its main driver of growth—developing the energy service
business—the Kyuden Group is also building a sustainable community together
with the region and contributing to the resolution of global societal issues so as to
expand its business.
By effectively utilizing the tangible and intangible management resources nurtured in
the energy service business, which is focused on Kyushu, the Group will continue to
create a series of new businesses that can help with building a sustainable community
together. The wealth of expertise accumulated in Kyushu will be expanded to other areas
and overseas and by so doing, the Kyuden Group will allow it to continue contributing
to the resolution of global societal issues, such as the challenge of becoming carbon
neutral.
By achieving maximum synergy between these three drivers, we will contribute to
resolving societal issues in Japan and overseas but it will also lead to medium- to
long-term growth for the entire Kyuden Group. That, in turn, will result in sustainable
development for both the Group and society.
Contributing to the development of
the regional society, particularly
in the Kyushu region
Solving domestic and
international issues by
combining technologies and
expertise cultivated in Kyushu
Turning the challenge of
carbon neutrality into a
source of new growth
Business Model—Achieving sustainable growth for the Kyuden Group and society—18Business Model
Value Creation Story Data
Introduction A Foundation for Creating Value
Strategy and Performance
Taking on the challenge of realizing a sustainable,
low-carbon society and providing more
prosperous, comfortable lifestyles.
Developing the energy service business Major related businesses and initiatives: Japanese electric power business ,
Renewable energy business
We are moving forward with an array of measures to strengthen our
ability to procure fuel, including diversifying the partners from whom we
procure, participating in resource development and production projects,
and introducing fuel trading to adjust amounts and control prices. In
terms of transporting fuels, our ships, whether our own LNG ships or
dedicated contracted ships, help us to keep costs down. At the same
time, by integrating this operation with our electricity transactions,
we are optimizing management of supply and demand and working to
maximize profitability for the Group.
We deliver a stable supply of electricity, sending it along transmission
lines from power stations to substations, and along distribution lines
from substations to places such as homes and factories. To be able to
deliver low-cost, stable electricity to support Kyushu’s industries and
lifestyles, we operate a stable electricity system preserving steady
transmission and distribution facilities.
Developing the energy
service businessFuelprocurement
Power
generation
Energy
services
Power
transmissionanddistribution
Fuel procurement
Our aims are to ensure long-term, stable energy supplies, to combat
global warming, and to supply affordable electricity. By promoting
nuclear power—predicated on safety and peace of mind—proactively
developing and introducing renewable energy, raising the efficiency
levels of thermal power, and through other means, we are able to
generate power from a well-balanced range of sources. As a result
of these efforts, the percentage of energy from zero-emission or FIT
energy sources that we offer is the highest in the industry.
Power generation Power transmission and distribution
Contributing to the development of the regional society, particularly in the Kyushu region
We provide various energy services that meet the diverse needs of
customers, including proposals for plans and services meeting the
requirements of household customers and one-stop energy services
for corporate customers. Through retail electricity sales outside Kyushu
and other initiatives, we are continuing to expand our energy service
business inside and outside the region.
Energy services
P29–34
P35–36
Contributing to
resolving global
societal issues
Developing the
energy service
business Building a
sustainable
community
together19Business Model
Value Creation Story Data
Introduction A Foundation for Creating Value
Strategy and Performance
As a local company with operations in all of Kyushu’s
prefectures, we will grow together with Kyushu’s local
communities and society through the creation of markets
for new businesses and services.
Building a sustainable community together
Major related businesses and initiatives: ICT service business ,
Urban development business , Resolving community and societal issues
Over the years, the Kyuden Group has developed alongside Kyushu, the
base of our business operations. During that time, we have established
strong network with customers as well as local authorities, companies,
and organizations. That relationship of trust that we have nurtured is one
of the Group’s most prized assets. As part of that relationship, we are
actively promoting communication to help with building a sustainable
community together.
We are building a sustainable community together with the people and
government of the region, as well as with academic research institutions
and local companies. Through this collaboration between industry,
academia, and government, we are promoting urban development by
creating safe and secure, but also vibrant and lively spaces. We are
also working with local residents and moving forward with initiatives
such as the Q-Den Nigiwai Startup Project, which aims to construct a
sustainable business model and so help resolve regional issues.
Building a sustainable
community together
Identifying
issues that
are closely
related to the
region
Co-existenceandco-creation with
the region
Communication
with the region
New business
development
projects
Communication with the region
The Kyushu Group will strive alongside the people of Kyushu, rack its
brains, and actively take on the challenge of resolving a variety of issues.
We sincerely take on board the feedback we receive as part of our
communication with our customers and local residents and share this
information within the Group. We also analyze that feedback to identify
the issues that face the region and society, and apply what we learn to
our business operations.
Discovery of issues that are closely
related to the region
Co-existence and co-creation with the region
Contributing to
resolving global
societal issues
Developing the
energy service
business Building a
sustainable
community
together
We use the wealth of technical capabilities and expertise at our
disposal, along with the human resources who form the backbone of our
business—regardless of nationality, gender, or age—to drive innovation
throughout the Group. We are developing the KYUDEN i-PROJECT as
a means of creating new businesses and services. Further, by actively
participating in projects where we can utilize the Group’s strengths, in
areas such as social infrastructure, urban development, or real estate,
we are both helping to develop regional communities and resolve issues
as well as securing new sources of revenue.
New business development projects
Developing expertise cultivated in Kyushu on a hybrid basis to resolve issues in Japan and overseas
P40 P54–55P3920
Business Model
Value Creation Story Data
Introduction A Foundation for Creating Value
Strategy and Performance
From Kyushu, the center of Asia, we will continue
to take on the challenge of trying to resolve
global societal issues.
Contributing to resolving global societal issues
Major related businesses and initiatives: Challenge of Reaching Carbon Neutrality
by 2050 , Overseas business
As the problem of climate change worsens, expectations are rising
around the world for companies to implement decarbonization efforts
or promote ESG management. As a leader in low-carbon and carbon-
free efforts, we will use the knowledge and expertise we have cultivated
in Kyushu to the best of our abilities in other areas and countries and
contribute to the fight against this global societal issue.
In addition to using our technologies, expertise, and networks to the
maximum effect and steadily promoting our overseas electric power
business, we are investing in revenue expansion, such as in particularly
promising renewable energy projects. Our goal is to achieve a total
power output of 5,000 MW from the overseas projects in which we
hold equity by 2030. As such, we are expanding our renewable energy
business by developing geothermal power and participating in projects
linked to offshore wind power and hydroelectric power. We will develop
businesses in new fields that contribute to the stable supply of electric
power, environmental protection, and energy saving in each country, such
as microgrid businesses and consulting on renewable energy projects. As
we do so, we will aim for an optimum asset portfolio as we monitor each
project and take their individual characteristics into consideration.
Contributing to resolving
global societal issues
Disruptive
innovation
Strategic
investment
and risk
management
Committing to
tackling global
societal issues
Creation of new
business models and
reforms to business
composition
We gave deep consideration to what we could do for our customers,
society, and the environment and as a result, alongside making optimal
use of the Group’s strengths, we will work ceaselessly to create new
business models, such as through the KYUDEN i-PROJECT, and to
reform our business portfolio. We will continue to challenge ourselves to
always evolve, so as to help resolve issues that face global society.
Creation of new business models and
reforms to business composition
Committing to tackling global societal issues
Strategic investment and risk management
To become carbon neutral, maximal use of existing technologies and
energy reform through revolutionary innovation will be absolutely
necessary. We will not merely rely on our existing investments in low-
and carbon-free technologies, we will aim to create that revolutionary
innovation. To get there, we will pioneer cutting-edge research in
multidiscipline laboratories, and spur interaction with partner companies
inside and outside Japan through an alliance.
Incremental innovation
Turning the challenge of carbon neutrality into a source of new growth
P22–25 P37–38
Contributing to
resolving global
societal issues
Developing the
energy service
business Building a
sustainable
community
together21Business Model
Value Creation Story Data
Introduction A Foundation for Creating Value
Strategy and Performance