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Conclusion of a solar power purchase agreement (to promote decarbonization by using renewable energy)

November 02, 2021
Seiko Holdings Corporation

Fuyo General Lease Co., Ltd.

Seiko Holdings Corporation (Chairman & Group CEO, CCO: Shinji Hattori; head office: Chuo-ku, Tokyo, Japan; hereinafter referred to as “Seiko Holdings”) is pleased to announce the conclusion of a solar-energy-generation green power purchase agreement (PPA*1 service) between its group company, Seiko Instruments Inc. (President: Tetsu Kobayashi; head office: Chiba-shi, Chiba, Japan; hereinafter referred to as “Seiko Instruments”) that manufactures and sells electronic components, precision components, etc., and Fuyo General Lease Co., Ltd. (President & Chief Executive Officer: Yasunori Tsujita; head office: Chiyoda-ku, Tokyo, Japan; hereinafter referred to as “Fuyo Lease”).

Among the many efforts being made to address climate change and achieve carbon neutrality by 2050, there has been an increase in the use of PPA contracts. These require no initial investment on the part of the client company, and they can help to address environmental issues in a sustainable manner.

Under this PPA service agreement, Fuyo Lease will install an approximately 760 kW solar power generation system on the roof of Seiko Instruments Sendai Unit (Sendai City, Miyagi Prefecture). Seiko Instruments will use the power generated from this solar power system for manufacturing, and will pay Fuyo Lease in accordance with its actual power consumption. This is the second PPA arrangement that Fuyo Lease has provided to the Seiko Holdings Group, following Morioka Seiko Instruments Inc. (Shizukuishi-cho, Iwate Prefecture), which began using the service last year.

Image of service

The Seiko Instruments Sendai Unit manufactures micro batteries, small magnets, Superior Performance Co-Ni Alloy Products (SPRON), etc. As part of its focus on environmentally friendly manufacturing, the Sendai Unit has been taking measures to limit global warming, including reducing waste and hazardous chemical substances. The facility has also been working to reduce energy-derived CO2 emissions through more efficient operation and improvement of production facilities. By introducing Fuyo Lease’s PPA service, Seiko Holdings will accelerate its efforts to achieve a decarbonized society.

In its mid-term management plan called Frontier Expansion 2021, the Fuyo Lease Group has designated Energy & Environment as one of its strategic fields, and it is expanding its solutions and financial support for customers who are making efforts to use renewable energy and to conserve energy. For example, in addition to providing PPA service, the Group is offering the Fuyo Zero Carbon City Support Program*2, a unique financing program designed to decarbonize local communities, developing businesses that utilize storage batteries, acquiring solar secondary projects*3, etc. In addition, the Fuyo Lease Group has moved up the date for achieving RE100*4 to 2030, and is also aiming to achieve carbon neutrality by 2030.

The Seiko Holdings Group and the Fuyo Lease Group will continue to promote the use of renewable energy and various other initiatives to contribute toward the realization of a sustainable society.

Overview of solar-power-generation system

Installation site
45-1 Matsubara, Kamiayashi, Aoba-ku, Sendai City, Miyagi Prefecture

Planned time of completion (scheduled commencement of service)
March 2022

Scale of output (module capacity)
759.44 kW-dc*5

(*1) PPA = power purchase agreement
(*2) A preferential financing program with donations provided to companies and organizations that install renewable energy equipment and energy-saving devices in the area of a municipality that has declared itself a “zero-carbon city.” This initiative would donate a sum equivalent to 0.2% of the contract amount to organizations (local governments, foundations, incorporated associations, NPOs, etc.) that contribute to the promotion of zero-carbon cities.
(*3) Projects for which FIT (Feed-in Tariff) rights have been acquired but construction has not yet started and projects for which electricity sales have already started.
(*4) An international initiative aimed at sourcing 100% renewable energy for all business activities.
(*5) DC = direct current

Press Contact:

Seiko Holdings Corporation  Public Relations Department

E-mail: prdept@seiko.co.jp / Tel: +81-3-3564-4370

Fuyo General Lease Co., Ltd. Corporate Communication Division

E-mail: Fuyo-ir@fgl.co.jp / Tel: +81-3-5275-8891

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