Monthly Report

MUFG Bank signs virtual PPA to procure Shiranuka Solar Grazing Farm’s non-fossil certificates

July 29, 2024
Shiranuka Solar Grazing Power Plant
Shiranuka Solar Grazing Power Plant will be developed in Shiranuka Town, Hokkaido. (Image: Machikoshi Energy)

MUFG Bank signed a 20-year virtual PPA with Osaka Gas, agreeing to purchase non-fossil certificates generated at Shiranuka Solar Grazing Power Plant, the companies announced on July 26, 2024.

The procured renewable energy certificates will be used by MUFG Bank to turn the power consumption at the rental buildings it owns renewable. MUFG Bank expects the PPA to result in an 8,000 tons per year CO2 emission reduction, which accounts for approximately 20% of the company’s remaining domestic emissions.

Shiranuka Solar Power Plant, which received investment from Machiokoshi Energy among other companies, was awarded an 8.84 yen per kWh feed-in-premium price for a 9.575 MW (AC) asset in Japan’s most recent round of solar auctions. The power plant will be located in Shiranuka Town, Hokkaido.

According to the statement, in the solar grazing model, “agricultural and pasture management businesses that are contracted by power generation businesses earn income by grazing sheep on the premises of solar power plants and providing vegetation management services.”

The Japan Energy Hub CPPA module shows that Daigas Energy has disclosed multiple corporate PPAs in the past, including an 18 MW deal with Aeon Tohoku.

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