Virtual PPA signed in North America
JTEKT NORTH AMERICA CORPORATION (headquartered in South Carolina; hereinafter "JNA"), the North American headquarters company of JTEKT Corporation, has signed a virtual Power Purchase Agreement (PPA) with Greenalia, the European Renewable Independent Power Producer, through its American division Greenalia Power US subsidiary Excel Advantage Services, LLC (headquartered in New York; hereinafter "Greenalia") . World Kinect Corporation (headquartered in Florida) served as advisor for the PPA.
Under this agreement, Greenalia will build a new solar power plant in Texas, where JTEKT will receive 142.8MW of "environmental value" per year through renewable energy generation. This environmental value will offset JNA CO2 emissions by approximately 124,600 tons per year, equivalent to the total electricity consumption of all production sites in North America.
About Virtual PPA
A Power Purchase Agreement (PPA) is a direct power purchase agreement between a power producer and a consumer. A virtual PPA is a "virtual power purchase agreement," meaning that only the environmental value based on the amount of electricity generated from a renewable energy power plant built outside the consumer's premises is traded, without involving actual electricity. The consumer can procure Renewable Energy Certificates (RECs) without having to change their electricity supplier.
Virtual PPA : Conceptual Diagram
Background of this Agreement
JNA has signed a contract to purchase 142.8MW of clean energy per year from the Texas Solar Power Plant, which will provide 100% of the electricity used in North America beginning in 2025, in order to significantly reduce CO2 emissions from its North American production facilities. This will reduce 75% of CO2 emissions from the production facilities in North America, making significant progress toward our goal of achieving carbon neutrality by 2035. JNA will continue to pursue energy conservation activities to achieve carbon neutrality by 2035In addition, all of the solar power generation facilities to be developed by Greenalia under this agreement will be newly built and will provide an "additionality" increase to the amount of renewable energy in the world, thereby contributing to the expansion of renewable energy in North America.
About the future
JTEKT has formulated the "Environmental Action Plan 2025," which sets forth policies and specific targets to promote environmental conservation activities to achieve the "Environmental Challenge 2050," and the entire JTEKT Group shares and works toward this goal. In addition to actively working to reduce our environmental impact, including risk management of water resources, we will further promote the reduction of CO2 emissions through the development of new technologies and improvement of production processes to achieve carbon neutrality for the entire JTEKT Group by 2035. Moreover, we will also strive to develop human resources and create new value that contributes to society.
■Examples of our ESG initiatives and business activities
■JTEKT Long-Term and Mid-Term Management Plans