Achieving 100% Additional Renewable Energy through Virtual PPA Utilizing Environmental Value from Woody Biomass

NTT Urban Solutions Corporation (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Yasushi Ikeda; hereinafter "NTT Urban Solutions") is promoting the introduction of additional renewable energy (hereinafter "renewables") under the NTT Group's environmental energy vision "NTT Green Innovation toward 2040," under the environmental slogan "Green Future with US," aiming to achieve its environmental load reduction target of "Scope 1, 2, and 3 carbon neutrality by fiscal year 2050"※1.

NTT Facilities, Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Shin Kawaguchi; hereinafter "NTT Facilities"), a member of the NTT Urban Solutions Group, and NTT Anode Energy Corporation (Headquarters: Minato-ku, Tokyo; President and CEO: Teruyuki Kishimoto; hereinafter "NTT Anode Energy"), have now concluded a long-term virtual Power Purchase Agreement (PPA)※3 to procure additional renewables.

Under this agreement, starting June 2026, the Innovation Center operated by NTT Facilities (Koto-ku, Tokyo; hereinafter "Innovation Center") will utilize environmental value from a woody biomass power plant operated by BPS Ikoma Co., Ltd. (Headquarters: Daito City, Osaka Prefecture; President and CEO: Hayato Higano; hereinafter "BPS Ikoma"), in which NTT Anode Energy has invested.

Applying environmental value from an additional biomass power plant to a specific building via virtual PPA, thereby achieving substantially 100% renewables, represents an advanced domestic case and is also the first such initiative within the NTT Group.

At the Innovation Center, the virtual PPA utilizing environmental value from woody biomass has been implemented across the entire building, achieving substantially 100% additional renewable energy for all electricity consumption (approximately 750,000 kWh annually). This is expected to reduce greenhouse gas emissions by approximately 300 tons per year.

Selected Facility for Virtual PPA Implementation

The Innovation Center, selected by NTT Urban Solutions as the facility for implementing this virtual PPA initiative, is a research and development hub established by integrating NTT Facilities' accumulated expertise in environmental technologies, energy-saving technologies, and office environment consulting.

https://www.ntt-us.com/sustainability/environment/index.html

※1

Scope 1: Direct greenhouse gas emissions from NTT US Group's fuel consumption, etc.

Scope 2: Indirect greenhouse gas emissions from purchased electricity and heat used by the NTT US Group

Scope 3: Other indirect greenhouse gas emissions associated with business activities (e.g., building construction, use of sold real estate and products)

※2

"Additionality" refers to the effect of promoting new renewable energy installations. From the standpoint of mitigating climate change, an increasing number of companies and local governments are placing importance on additionality. This initiative supports the stable operation and investment recovery of a recently commissioned woody biomass power plant through long-term PPA, thereby contributing to future renewable energy development.

※3

A virtual PPA is a contract in which only the environmental value (representing zero CO2 emissions) generated from renewable energy produced at a facility located outside the buyer's premises is transferred from the power generator to the buyer. By decoupling electricity and environmental value, this arrangement enables the introduction of additional renewables without altering existing electricity contracts.

(Reference) Regional Resource Circulation Concept at Kitakata Biomass Power Plant

Woody biomass power plants, among renewable energy sources, feature relatively large and stable power output that is less affected by weather conditions, enabling consistent generation of environmental value.

This power plant effectively utilizes previously underused local woody resources—such as construction wood waste, unused thinned timber from local forestry, and pruning branches from parks and street trees—as regional energy sources. It generates approximately 81 million kWh of electricity annually, creating an equivalent amount of environmental value, and actively promotes resource circulation.

Furthermore, utilizing unused thinned timber contributes to forest management, promotes healthy forest growth and ecosystem preservation, and supports revitalization of regional forestry.

The electricity generated is used by local schools and public facilities. Beyond establishing a system where resources and energy circulate locally, the plant advances CO2 absorption and sequestration by expanding the use of underutilized woody resources and increasing company-led reforestation. By reusing thinned timber, it aims to realize sustainable biomass power generation.

(Reference) About NTT Anode Energy Corporation

NTT Anode Energy Corporation is an energy business company established to address social challenges in the environment and energy sectors by leveraging NTT Group's technologies and assets. It operates an "energy distribution business" that integrates renewable energy development, supply-demand adjustment, and sales. As part of this, it has invested in this biomass power project, promoting resource circulation through wood waste utilization and local production and consumption of energy, aiming to revitalize regional economies while achieving decarbonization.

Going forward, NTT Anode Energy will continue advancing innovative introduction and utilization of renewables, respond to societal and customer needs, and contribute to achieving carbon neutrality across society.

Related Releases

"Introduction of Additional Renewable Energy through Offsite PPA" (March 26, 2025)

https://www.ntt-us.com/news/2025/03/news-250326-01.html

・Environmental Load Reduction Initiatives of NTT Urban Solutions Group (December 21, 2022)

https://www.ntt-us.com/news/2022/12/news-221221-01.html