Tsubakimoto Chain Virtual PPAs Advance Renewable Energy Strategy

Tsubakimoto Chain Virtual PPAs mark the company’s first virtual power purchase agreements and will be introduced progressively from fiscal 2026. The agreements were signed by Tsubakimoto Chain Co with ORIX Corporation and Toshiba Corporation to acquire renewable energy environmental value. The initiative allows the company to continue receiving electricity from existing suppliers while obtaining renewable energy attributes through long-term agreements.

A virtual PPA is a mechanism where a company purchases the environmental value associated with renewable energy generation instead of directly purchasing electricity. Under this arrangement, Tsubakimoto Chain will obtain renewable energy benefits from newly developed solar power facilities while maintaining its current electricity supply structure. The approach enables companies to support renewable energy expansion without changing existing power procurement arrangements or physical electricity delivery systems.

Renewable Energy Agreements and Emission Reduction Impact

The agreements cover multiple newly developed solar power facilities with a combined estimated annual generation capacity of approximately 15 GWh. These virtual PPAs are expected to reduce CO2 emissions by approximately 7,000 metric tons annually. The acquired environmental value will be applied to electricity consumed at the company’s Saitama Plant. The facility already achieves approximately 58% renewable electricity coverage through on-site solar generation and the use of carbon-free electricity.

ORIX and Toshiba Renewable Energy Contributions

ORIX Corporation will provide environmental value generated from 10 third-party-owned solar power plants with estimated annual power generation of approximately 9 GWh. Toshiba Corporation will supply environmental value over a 20-year period from rooftop solar power facilities installed at logistics warehouses. These environmental benefits will be provided through non-FIT non-fossil certificates, supporting renewable energy utilization and corporate decarbonization activities.

Corporate Decarbonization Strategy in Japan

The virtual PPA initiative supports broader renewable energy adoption efforts in Japan by enabling companies to access renewable energy attributes through long-term agreements. Tsubakimoto Chain’s approach combines existing renewable electricity measures with additional environmental value procurement to further reduce emissions. The company’s investment in virtual PPAs demonstrates how industrial organizations can strengthen sustainability strategies while maintaining operational flexibility and energy reliability.

Frequently Asked Questions

What are Tsubakimoto Chain’s virtual PPAs designed to achieve?
Tsubakimoto Chain’s virtual PPAs are designed to help the company obtain renewable energy environmental value while continuing to use electricity from existing suppliers. The agreements support long-term decarbonization goals through solar power generation partnerships with ORIX and Toshiba. They are expected to contribute approximately 7,000 metric tons of annual CO2 emission reductions by applying renewable energy attributes to electricity consumption at the Saitama Plant and expanding sustainable energy practices.