Kuraray Forms Virtual Power Purchase Agreement in the United States
Kuraray Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Hitoshi Kawahara) hereby announces that Kuraray Holdings U.S.A., Inc. has formed a ten-year virtual power purchase agreement (VPPA)*1 starting in October 2025 through Tokyo Gas America Ltd. (hereinafter, “Tokyo Gas America”), a United States-based subsidiary of TOKYO GAS CO., LTD., with the aim of shifting to renewable energy in the U.S.
Under the VPPA, this solar power project owned by Tokyo Gas America (located in Wharton County, Texas) will provide renewable energy certificates*2 equivalent to 300 GWh on an annual basis. We anticipate that this move will reduce the Kuraray Group’s GHG emissions in the U.S. by approximately 70%, and reduce the entire Group’s electricity use by approximately 40%.
The Kuraray Group recognizes climate change countermeasures as a priority and aims to achieve carbon net-zero (Scope 1 and Scope 2 GHG emissions) by 2050. Taking this into account, we have set an ambitious new emissions target of reducing emissions by 63% by 2035 compared to 2021 levels.
The Kuraray Group will steadily implement self-driven measures to reduce emissions, including shifting to renewable electricity through the Group, improving energy conservation and efficiency at production bases, switching to natural gas to for in-house power generation, as well as establishing carbon capture, utilization and storage (CCUS) technologies. Simultaneously, we will work with our suppliers to promote a transition in utility fuels to those derived from new, clean energy sources to achieve this goal.
We employed Kinect Energy, Inc., a group company of World Kinect Corporation, to advise in the conclusion of this VPPA.
*1 A contract in which environmental value, in the form of renewable energy certificates, is purchased without directly receiving electricity from a renewable energy company.
*2 A renewable energy certificate documents the environmental value and attributes of electricity derived from renewable sources to be traded separately from the direct provision of electricity.