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

NTT Urban Solutions Corporation NTT Facilities, Inc. NTT Anode Energy Corporation

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

NTT Facilities, Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Shin Kawauchi; hereinafter "NTT Facilities"), and NTT Anode Energy Corporation (Headquarters: Minato-ku, Tokyo; President and CEO: Teruyuki Kishimoto; hereinafter "NTT Anode Energy"), both part of the NTT Urban Solutions Group, have now concluded a long-term virtual Power Purchase Agreement (PPA) to procure renewable energy with additionality.

Under this agreement, starting June 2026, the environmental value generated by 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, will be allocated to the NTT Facilities Innovation Center (Shin-ohashi, Koto-ku, Tokyo; hereinafter "Innovation Center"), selected as the facility for this virtual PPA initiative.

This initiative, which allocates environmental value from an additional biomass power plant to a specific building via virtual PPA to achieve de facto 100% renewable energy, represents an advanced domestic case and is the first of its kind 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 de facto 100% renewable energy for all electricity consumed (approximately 750,000 kWh annually). This is expected to result in greenhouse gas emission reductions of approximately 300 tons per year.

Facility for this Virtual PPA Implementation

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

NTT Facilities Innovation Center

Location

Shin-ohashi, Koto-ku, Tokyo

Total Floor Area

4,342.4m2

Floors

4 above ground, 1 underground

Completion

April 2014

Annual Electricity Consumption (estimated)

Approximately 750,000 kWh

Environmental Initiatives

Operated as a "demonstration office" where in-house developed technologies are implemented in the workplace to verify their effectiveness. Also utilized for developing energy-saving technologies and services for customers.

<Major Awards and Certifications>

2015 LEED-NC Gold

2016 Sustainable Architecture Award

2019 CASBEE Wellness Office Evaluation Certification S-Rank

Under the environmental slogan "Green Future with US," the NTT Urban Solutions Group actively engages in environmentally conscious business activities, collaborating with local communities, municipalities, and enterprises to apply the outcomes of various initiatives to urban development. https://www.ntt-us.com/sustainability/environment/index.html

Note: "Green Future with US" is a registered trademark of NTT Urban Solutions Corporation.

※1 Scope 1: Direct greenhouse gas emissions from fuel use within the NTT US Group

Scope 2: Indirect greenhouse gas emissions from the use of purchased electricity and heat 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 the addition of new renewable energy facilities. From the standpoint of mitigating climate change, an increasing number of companies and municipalities are emphasizing additionality. This initiative supports the stable operation and investment recovery of a newly operational 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 (the value representing zero CO2 emissions) generated from renewable energy produced at a site outside the buyer's premises is transferred from the power generator to the buyer. By decoupling electricity and environmental value, this enables the introduction of renewable energy with additionality without changing existing electricity contracts.

(Reference) Image of Local Resource Circulation at Kitataguchi Biomass Power Plant

Woody biomass power plants, among renewable energy sources, feature relatively high power output and are less affected by weather and natural conditions, enabling stable creation of environmental value.

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

Additionally, utilizing unused thinned timber contributes to forest management, healthy forest growth, and ecosystem preservation, while also supporting revitalization of the regional forestry industry.

The electricity generated is used by local schools and public facilities. Beyond establishing a system where resources and energy circulate within the region, the initiative advances CO2 absorption and sequestration through utilization of waste wood and expansion of company-led reforestation, aiming to reuse timber as thinned wood again, thus realizing sustainable biomass power generation.

Thinned timber

Company forest management Company forest

(Reference) About NTT Anode Energy Corporation

NTT Anode Energy Corporation is an energy business company established to solve societal challenges in the environment and energy sectors by leveraging NTT Group's technologies and assets. The company 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 generation project, promoting resource circulation through utilization of waste wood and achieving local production and consumption of energy, aiming to revitalize regional economies while advancing decarbonization.

Going forward, NTT Anode Energy will continue to promote advanced introduction and utilization of renewable energy, respond to societal and customer needs, and contribute to achieving carbon neutrality across society.

Related Press Releases

・Introduction of Renewable Energy with Additionality through Offsite PPA (March 26, 2025)

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

・Initiatives by NTT Urban Solutions Group to Reduce Environmental Impact (December 21, 2022)

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

【Inquiries】

NTT Urban Solutions Corporation, Public Relations Department: Kotagari, Zhou, Abe nttus-pr@ntt-us.com

NTT Facilities, Inc., Management Planning Department, Public Relations pr@ntt-f.co.jp

NTT Anode Energy Corporation, Public Relations 03-5444-2442