In line with the 2050 Carbon Neutral Declaration, we are pursuing the power generating business with renewable energy, such as solar power, wind power, biomass power, and geothermal power. We are also conducting demonstration projects in setting up supply chains to promote social implementation of carbon-free green hydrogen, both in Japan and abroad. We will make use of the knowledge and know-how gained through these endeavors to propose optimal solutions in response to various customer needs toward decarbonization.

• Create synergies with Construction Business and the Real Estate Development Business by responding to customer needs toward decarbonization
• Increase power generation capacity and diversify energy source to lower total risk
  (i) Initiate renewable energy related business in Asia (power generation, PPA* , EPCC, etc.), (ii) Promote efforts for non-FIT power supply, etc.
• Strengthen efforts for progress in hydrogen-related technologies and commercialization
  (i) Promote decarbonization by using hydrogen in the construction industry (construction machinery using hydrogen mixed combustion engines, etc.), (ii) Promote businesses in the light of experience in hydrogen pilot projects (producing/ supply) both in Japan and abroad

* Power Purchase Agreement: A system in which an agreement for the purchase of electric power is concluded between a business operator and a consumer. With an onsite PPA, a PPA business operator is provided with space such as the rooftop of a building owned by the consumer, where power-generating facilities are built in the same location as the facility to consume the electric power. Electric power generated is provided to the consumer, and the power generating facilities are operated and maintained by the operator

• Shift in main power source to renewable energy (proportion of renewable energy power generation in FY 2031.3 at 36% to 38% with the 6th Strategic Energy Plan)
• Switch from the Feed in Tariff system (FIT system) to FIP system* (integration into the electric power market)
• Diversification of customer needs for decarbonization
• High interest in hydrogen energy

* Feed-in Premium system: A system used when an operator generating renewable energy sells generated power in the wholesale electric power market or through a negotiated transaction, in which the difference between the standard price (FIP price) and market price is granted as a premium

• Invest ¥50 billion over five years mainly in fields which have not been commercialized by the renewable energy business such as geothermal and small-scale hydropower fields and in the hydrogen business
• Undergo initiatives to create synergy with the Construction Business and the Real Estate Development Business with EPC* orders, onsite PPA, and providing consultations regarding renewable energy
• Reach profitability early by promoting hydrogen-related businesses

* Undertaking Engineering, Procurement, and Construction all at once