Cosmo Oil Marketing and Japan Closures Conclude Off-site Physical PPA; Utilizing Solar Power Plants for the First Time by Both Companies, Aiming for Annual CO2 Reduction of Approximately 10,260 Tons 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 concluded an off-site physical PPA*1 utilizing solar power plants with Japan Closures Co., Ltd. (President: Motoyoshi Kiri, hereinafter "Japan Closures"), a group company of Toyo Seikan Group Holdings, Ltd. (President: Takuya Nakamura). Based on this agreement, the supply of renewable energy electricity (hereinafter "RE electricity") will commence from April 1, 2026, to Japan Closures' Komaki plant.

Under this agreement, Cosmo Energy Solutions*2, part of the Cosmo Energy Group, will procure electricity from solar power generation facilities within Chubu Electric Power's service area and supply approximately 12% of the annual electricity consumption of Japan Closures' Komaki plant as RE electricity with additionality*3. The remaining approximately 88% will be achieved by utilizing Cosmo Oil Marketing's RE electricity plan, "Cosmo Denki Business Green"*4, resulting in an estimated total CO2 emission reduction of approximately 10,260 tons*5 annually.

Cosmo Denki Business's "Off-site PPA Plan"*6 is characterized by its ability to flexibly design the contract period according to equipment renewal plans and business operations, unlike typical off-site physical PPA schemes where long-term contracts are standard. This allows for the realization of an optimal contract structure that meets the needs of customers who wish to promote the introduction of RE electricity while reducing the introduction hurdle.

In pursuit of a decarbonized society, Japan Closures aims to reduce greenhouse gas emissions from its group-wide business activities by 50% by fiscal year 2030 (compared to fiscal year 2019) and achieve carbon neutrality by fiscal year 2050, under its medium- to long-term environmental target "Eco Action Plan 2030." The introduction of RE electricity this time is one of the key initiatives towards achieving that goal. This is the first initiative for both Japan Closures and Cosmo Oil Marketing to supply electricity through an off-site physical PPA utilizing solar power generation.

Moving forward, both companies will continue to contribute to reducing environmental impact and realizing a decarbonized society through the expansion of RE electricity introduction, with a focus on additionality.

※1 An off-site physical PPA is a contract in which a company purchases renewable energy generated outside its own premises over a long period. Physical PPA refers to a scheme that supplies electricity and its associated environmental value as a package to the customer through an electricity retailer.

※2 Cosmo Energy Solutions Co., Ltd. is a wholly-owned subsidiary of Cosmo Oil Marketing and an electricity retailer that supplies power. Cosmo Oil Marketing has entered into an agency agreement for electricity sales with Cosmo Energy Solutions Co., Ltd.

※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 effectively reduces CO2 emissions by using non-fossil certificates designated for renewable energy and adding environmental value. By using it in conjunction with electricity supply, the consumed electricity can be considered to be substantially derived from renewable energy. Since its launch in 2020, it has been utilized mainly by corporations and municipalities aiming for decarbonization. URL: https://www.cosmo-denki.com/business/low/green/

※5 Based on the annual electricity consumption for fiscal year 2024.

※6 Regarding Cosmo Denki Business's "Off-site PPA Plan" URL: https://www.cosmo-denki.com/business/lp/solution/ppa_off.html