Cosmo Oil Marketing and Nippon Closures Sign Off-site Physical PPA: Utilizing First Solar Power Plant for Both Companies to Reduce CO2 by Approx. 10,260 Tons Annually at Komaki Plant

Cosmo Oil Marketing Co., Ltd. (President: Naoki Takayama; hereinafter 'Cosmo Oil Marketing'), a group company of Cosmo Energy Holdings Co., Ltd. (President: Shigeru Yamada), has signed an off-site physical PPA*1 utilizing a solar power plant with Nippon Closures Co., Ltd. (President: Motoki Kiri; hereinafter 'Nippon Closures'), a group company of Toyo Seikan Group Holdings, Ltd. (President: Takuji Nakamura). Based on this agreement, the supply of renewable energy electricity (hereinafter 'renewable energy') to the Komaki Plant owned by Nippon Closures will begin on April 1, 2026.

Under this agreement, Cosmo Energy Solutions*2, a member of the Cosmo Energy Group, will procure electricity from solar power generation facilities within the Chubu Electric Power area and supply approximately 12% of the annual electricity consumption of the Nippon Closures Komaki Plant as renewable energy with additionality*3. The remaining approximately 88% will be covered by utilizing Cosmo Oil Marketing's renewable energy plan 'Cosmo Denki Business Green'*4, with a total expected annual CO2 emission reduction of approximately 10,260 tons*5.

Unlike typical off-site physical PPA schemes, which often involve long-term contracts, Cosmo Denki Business's 'Off-site PPA Plan'*6 is characterized by the ability to flexibly design contract periods in line with equipment renewal plans and business operations. This realizes an optimal contract form that meets the needs of customers who want to promote the introduction of renewable energy while lowering the hurdles to adoption.

Nippon Closures aims to achieve a 50% reduction in greenhouse gas emissions from its group-wide business activities by fiscal year 2030 (compared to fiscal year 2019) and to achieve carbon neutrality by 2050 under its medium- to long-term environmental goal, 'Eco Action Plan 2030,' to realize a decarbonized society. The introduction of this renewable energy is one of the key initiatives toward achieving that goal. The supply via an off-site physical PPA utilizing solar power is a first for both Nippon Closures and Cosmo Oil Marketing.

Both companies will continue to contribute to reducing environmental impact and realizing a decarbonized society through the expansion of renewable energy introduction that emphasizes additionality.

*1 Off-site physical PPA is a contract form in which a company purchases renewable energy generated off-site over a long period. Physical PPA refers to a scheme in which electricity and its associated environmental value are supplied to the consumer as a single package through a retail electricity provider.
*2 Cosmo Energy Solutions Co., Ltd. is a wholly owned subsidiary of Cosmo Oil Marketing and is a retail electricity provider that supplies electricity. Cosmo Oil Marketing has concluded an agency agreement with Cosmo Energy Solutions Co., Ltd. regarding electricity sales.
*3 Additionality refers to the effect of promoting investment in new renewable energy facilities and creating new renewable energy for society as a whole.
*4 'Cosmo Denki Business Green' is a corporate electricity service that can effectively reduce CO2 emissions by adding environmental value using non-fossil certificates designated for renewable energy. By using it in conjunction with electricity supply, it is possible to consider the electricity used as effectively derived from renewable energy. Since its launch in 2020, it has been used mainly by corporate and municipal customers aiming for decarbonization.
URL: https://www.cosmo-denki.com/business/low/green/
*5 Based on annual electricity consumption for fiscal year 2024.
*6 Regarding the 'Off-site PPA Plan' of Cosmo Denki Business
URL: https://www.cosmo-denki.com/business/lp/solution/ppa_off.html