Hachinohe Biomass Power Plant to Provide Environmental Value to JR East via Virtual PPA — Promoting Decarbonization in the Railway Business —

〇 Hachinohe Biomass Power Co., Ltd. (President: Hiroshi Yasuda; hereinafter "Hachinohe Biomass"), in collaboration with eREX Co., Ltd. (President: Hitoshi Honna; hereinafter "eREX"), will provide environmental value to East Japan Railway Company (President: Yoichi Kise; hereinafter "JR East") starting in April 2026.

〇 This initiative is based on a virtual PPA. A virtual PPA is a long-term contract to purchase only the environmental value of a renewable energy power plant. It is becoming popular as a means to support corporate decarbonization because consumers can utilize renewable energy without changing their existing electricity contracts.

〇 Through this initiative, the Hachinohe Biomass Power Plant, which has been operated under the FIT system, will transition to the FIP system*. It will provide approximately 85 million kWh of environmental value annually to JR East, equivalent to a reduction of approximately 35,000 tons of CO2 per year. This contributes to a reduction of approximately 2% of JR East's total CO2 emissions.

〇 Through this initiative, we will contribute to the independence of renewable energy power sources and work toward the realization of a carbon-neutral society, which is a social challenge.

*FIP system: Abbreviation for Feed-in Premium system. In addition to the revenue that power producers earn by selling electricity and environmental value on the wholesale electricity market, etc., an FIP premium (the difference between the FIP base price and the reference price) is granted by the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO). The reference price is linked to market prices and is reviewed on a monthly basis.

1. Overview of this initiative JR East will purchase the environmental value equivalent to the total power transmission of the Hachinohe Biomass Power Plant through the eREX Group. To promote renewable energy as a primary power source, the Ministry of Economy, Trade and Industry is encouraging the transition of FIT power sources to the FIP system, and the power plant will also transition to business operations utilizing the FIP system starting in April 2026.

2. About each company's initiatives (1) Hachinohe Biomass Power Co., Ltd. Hachinohe Biomass Power Co., Ltd. is a company jointly established by Sumitomo Forestry Co., Ltd. (President: Toshiro Mitsuyoshi), Sumitomo Osaka Cement Co., Ltd. (President: Hironori Morohashi), and JR East with the aim of expanding the utilization of forest resources and creating environmentally friendly energy. Since starting operations in April 2018, it has supplied electricity equivalent to approximately 27,000 general households. It operates as a biomass power plant exclusively using domestic timber, fueled by unused forest materials from the local Aomori and Iwate prefectures. It is certified as a regional resource biomass power generation facility, recognized for its contribution to forestry promotion utilizing local timber and for its stable supply that is not affected by weather. We will continue to work with the local community to create environmentally friendly renewable energy.

(2) JR East JR East is a corporate group that continues to improve its environmental superiority and create new value for society. As part of its "Zero Carbon Challenge 2050," it has set long-term goals to reduce CO2 emissions by 50% by fiscal year 2030 compared to fiscal year 2013, and to achieve "net zero" by fiscal year 2050. To date, the company has promoted initiatives such as the development of renewable energy like solar and wind power, energy conservation through the introduction of new rolling stock, and the improvement of efficiency in its own thermal power plants. We will continue to take further steps toward "net zero" CO2 emissions across all phases of the energy network, from "production to transmission/storage to usage."

(3) eREX Co., Ltd. eREX develops retail and electricity trading businesses and power generation businesses in Japan, as well as power generation and fuel businesses in Southeast Asia. eREX's strength lies in its ability to provide end-to-end functions for power generation, trading, and retail, which are necessary for renewable energy aggregation. By maximizing the know-how cultivated through many years of electricity supply and demand management, we aim to be a one-stop provider for decarbonization support. Currently, we are not only handling environmental value but also developing grid-scale storage batteries and managing the supply and demand of renewable energy power sources. Through such aggregation businesses, we will contribute to the decarbonization of companies.

3. About Hachinohe Biomass Power Plant [Table Data] - Power Plant Name: Hachinohe Biomass Power Plant - Location: 76-370 Hamanayachi, Kawaragi, Hachinohe City, Aomori Prefecture - Generation Capacity: 12.4 MW - Estimated Power Output: Approx. 85 million kWh/year - Fuel Used: Wood chips, bark - Operator: Hachinohe Biomass Power Co., Ltd. - Investors: Sumitomo Forestry Co., Ltd. (52%), Sumitomo Osaka Cement Co., Ltd. (30%), East Japan Railway Company (18%) - Commercial Operation Start Date: April 1, 2018