Japanese Utility Chugoku Electric Secures $940M Transition Loan for Decarbonisation Efforts

Chugoku Electric Power Co., a Japanese utility, has secured JPY 149 billion ($940 million) in transition loan financing to fund decarbonization efforts. The company aims to achieve carbon neutrality by 2050.

The loan is backed by Japan's GX Acceleration Agency and guaranteed by several major lenders, including Mizuho Bank, Development Bank of Japan, and Sumitomo Mitsui Banking Corporation. This marks Chugoku Electric's second financing through the GX Acceleration Agency's debt guarantee program.

Funds will be used for safety enhancement works at Unit 3 of the Shimane Nuclear Power Station and repowering of the Akatsuka Hydroelectric Power Station, including replacement of turbines and generators.