Dai-ichi Kogyo Seiyaku's Ogata Plant Starts Receiving 100% Renewable Energy Supply for All Its Power Needs

Daigas Energy Co., Ltd. (hereinafter referred to as "the Company"), a wholly-owned subsidiary of Osaka Gas Co., Ltd., has signed off-site PPA (*1) "D-Green EX" contracts and renewable energy (hereinafter referred to as "RE") power menu "D-Green" contracts (*2) with Dai-ichi Kogyo Seiyaku Co., Ltd. (hereinafter referred to as "Dai-ichi Kogyo Seiyaku"). As a result, all electricity used at Dai-ichi Kogyo Seiyaku's Ogata Plant, a major facility, will be supplied by RE power from April 2026, with an expected annual reduction of approximately 4,000 tons of CO2. In recent years, many companies have set carbon neutrality targets and are accelerating RE power procurement as an initiative to achieve them, and RE power demand is expected to increase further. On the other hand, with the spread of RE throughout Japan, sudden rises and falls in electricity trading prices have occurred at the Japan Electric Power Exchange (JEPX), further increasing electricity price volatility. D-Green EX is a power contract where a power generator, a retail electricity provider (hereinafter referred to as "retail provider"), and a consumer enter into a long-term, fixed-price agreement based on an off-site PPA. This allows for stable and long-term RE power supply even under such circumstances. Furthermore, D-Green is a power menu that supplies 100% RE electricity by using non-fossil certificates for electricity generated at RE power plants that do not include thermal or nuclear power. In addition, D-Green is compatible with the concept of 24/7 CFE Compact (*3) because it supplies RE electricity generated at the same time slot to customers. Dai-ichi Kogyo Seiyaku has set "2050 Carbon Neutrality" as one of its materialities in response to social issues, and has set a long-term environmental vision of "30% reduction in greenhouse gas emissions by FY2030 (compared to FY2013)". From FY2025, they have revamped their sustainability promotion organization and are further accelerating their activities towards achieving their goals. This RE power supply is an important step towards realizing that goal. The Daigas Group, under its "Energy Transition 2050" announced in February 2025, will strive to solve challenges towards realizing a carbon-neutral society together with corporate customers working to promote decarbonization. Daigas Energy provides low-carbon and decarbonization solutions leveraging the strengths of an energy company, centered on its "D-Lineup" services, which are based on the three Ds: Decarbonization, Decentralization, and Digitalization. We will strive to solve challenges towards realizing a carbon-neutral society together with corporate customers working to promote decarbonization. *1 A contract method where a consumer purchases electricity generated at a power plant different from the demand site via a retail provider. *2 Osaka Gas and Dai-ichi Kogyo Seiyaku have signed a contract with the Company as an agent, and Osaka Gas supplies the electricity. *3 24/7 CFE Compact is an initiative launched in September 2021, led by the United Nations. Companies worldwide aiming to accelerate climate change countermeasures join this initiative to promote the spread of carbon-free electricity by matching electricity demand and carbon-free electricity supply in real-time (hourly). "D-Green EX" and "D-Green" supply destination: Dai-ichi Kogyo Seiyaku Ogata Plant Dai-ichi Kogyo Seiyaku Ogata Plant (230 Saigata, Ogata-ku, Joetsu City, Niigata Prefecture) "D-Green EX" and "D-Green" supply scheme image Company Overview Company Name: Osaka Gas Co., Ltd. Head Office Location: 4-1-2 Hiranomachi, Chuo-ku, Osaka City, Osaka Representative: Masataka Fujiwara, Representative Director, President and CEO Establishment Date: April 10, 1897 Business Description: Gas manufacturing and sales, electricity generation and sales, etc. Company Website: https://www.osakagas.co.jp/ Company Name: Daigas Energy Co., Ltd. Head Office Location: 4-1-2 Hiranomachi, Chuo-ku, Osaka City, Osaka Representative: Hirofumi Fukutani, Representative Director, President Establishment Date: October 1, 2019 Business Description: Sales and maintenance of gas and electricity for commercial customers, etc. Company Website: https://www.daigas-energy.co.jp/ Company Name: Dai-ichi Kogyo Seiyaku Co., Ltd. Headquarters Location: 48-2 Higashi-kujo Kamitonedacho, Minami-ku, Kyoto City, Kyoto Prefecture Representative: Naoki Yamaji, Representative Director, President Establishment Date: August 25, 1918 Business Description: Manufacturing and sales of various industrial chemicals and life science related products Company Website: https://www.dks-web.c