Mazda and partners conclude offsite corporate PPA on solar power generation

Toyo Seat Co., Ltd., Choshu Industry Co., Ltd., The Chugoku Electric Power Co.,Inc., and Mazda Motor Corporation have concluded an offsite corporate power purchase agreement (PPA) on solar power generation, a renewable source of energy, to help support the transition towards a carbon neutral society.
Mazda and partners conclude offsite corporate PPA on solar power generation
Courtesy of NREL.

Under the PPA, Choshu Industry will serve as the electric power producer, with Choshu Industry and Mazda installing new solar power generation facilities on unused land in the Chugoku Region, using those facilities to generate electricity, which will then be sold to Chugoku Electric Power. Chugoku Electric Power will then supply this electricity to Toyo Seat and Mazda as a source of renewable energy.

This agreement represents the Chugoku Region's first offsite corporate PPA involving more than one electric power consumer. From April this year, under the PPA, Chugoku Electric Power will commence, in stages, the supply of approximately 4,900 kW in renewable energy generated by solar panels to plants and other places of business belonging to Toyo Seat and Mazda. These arrangements are expected to reduce annual carbon dioxide emissions by approximately 2,610 tons.

The arrangements described above will benefit from Ministry of Economy, Trade and Industry subsidies (2022) for the promotion of new solar power generation installations led by electric power consumers.

The four parties to this agreement, as businesses involved in supplying and consuming electric power, remain committed to encouraging the further use of renewable energy in the Chugoku Region, aiming through such activities make to further contributions to the sustainable development of the local economy and the achievement of a carbon neutral society.

“Toyo Seat launched its Carbon Neutral Promotion Office in 2021 to accelerate our adoption of carbon neutral policies” said Uchimoto Daisuke, Division Manager, Carbon Neutral Accelerate Project, Director, Toyo Seat Co., Ltd. “As a company, we are taking on the challenge of reducing our carbon dioxide emissions to zero by 2050 under the slogan ‘Challenge Zero’. This activity focuses on two major areas: reducing our energy usage and contributing to sustainable power generation. As a major first step, we are delighted to participate in this offsite corporate PPA, working together with regional partners to increase the supply capacity of sustainable energy resources. We will continue driving forward with carbon neutral activities to benefit communities around the world and create a brighter future for the next generation.”

Ochiai Norihiro, Section Chief, Industrial Systems and Business Section, Sales Department, Energy Devices Division, Choshu Industry Co., Ltd., added that the PPA serves as a major step towards achieving a carbon neutral economy in the Chugoku Region.

“As we aim to reach carbon neutral status by 2050, we are fully engaged in these efforts, leveraging our advantages as a Japan-based manufacturer and working together with other stakeholders in the region, including partner companies and local authorities to provide products and services that our customers can use with confidence” said Mr Norihiro.

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