On September 21, 2018, Hitachi Zosen became the first Japanese manufacturer to issue green bonds. The proceeds from the Hitachi Zosen Green Bonds is used to purchase materials for the construction and refurbishment of WtE plants.

As a company sustained by the environmental sector, we will contribute to realizing a recycling-oriented society by further promoting the introduction of environment-friendly facilities. This business policy and the need for diversification of financing methods coincided, leading us to issue green bonds. The purpose of issuing bonds must be specified, and after a great deal of consideration we selected two green projects: "Rebuilding and construction of Kyoto City Nambu Clean Center No. 2 Plant" for Kyoto City and "Construction and operation of new WtE plant" for Kikuchi Environmental Preservation Association (Kumamoto Prefecture). The funds raised will be used for expenses such as purchasing materials for the project.
To be eligible for green bonds, the environmental benefits of the green project must be “specifically” disclosed. We clearly presented the benefits according to the specified items, such as what kind of production process the project will have and how much CO2 reduction can be expected. It was not easy because it was an ongoing project, but we worked with the project managers to respond. We thus issued the "Hitachi Zosen Green Bond", the first of its kind in the Japanese manufacturing industry.
Here is the current state of things.

Overview of projects

(1)Rebuilding and construction of Kyoto City Nambu Clean Center No. 2 Plant (provisional name)*

It is characterized by having a facility that turns food waste into biogas as well as generating electricity from waste with high efficiency.
We aim to recover the maximum energy from waste and reduce CO₂ emissions more than conventional waste incinerator power plants.

Client	Kyoto City
Project	Rebuilding and construction of Kyoto City Nambu Clean Center No. 2 Plant (provisional name)
Contents	Design and construction of waste treatment facility, administration office, and environmental learning facility (including dismantling of existing facility and construction of exterior and other ancillary facilities)
Description	Treatment capacity 500 t/day (250 t/day x 2 stoker-type incinerators), power output 14,000 kW Sorting and resource reuse facility: 180 t/6 hrs Biogas generation facility: 60 t/day (30 t/day x 2 lines)
Completion	September 30, 2019

• *The name of the factory is the name recorded at the time of receiving the order.

(2)WtE Plant for Kikuchi Environmental Preservation Association

The association plans to build a new waste incinerator power plant in order to promote permanent and reliable waste treatment in light of future trends in the association's area and sustainable waste treatment. We received an order in 2018 as a representative firm.

Client	Kikuchi Environmental Preservation Association
Project	Construction and operation of new WtE plant
Contents	Design, construction, and operation for 20 years after completion of WtE plant
Description	Treatment capacity: 170 t/day (85 t/day x 2 lines) Power output: 2,800 kW
Completion	March 31, 2021

• *The name of the factory is the name recorded at the time of receiving the order.