HIROSHIMA, Japan – Mazda Motor Corporation (Mazda) is advancing initiatives based on three pillars—energy conservation, shifting to renewable energy, and introducing carbon-neutral fuels—with the goal of achieving carbon neutrality at its global manufacturing facilities by 2035. As part of its renewable energy initiative, Mazda will expand the use of on-site power purchase agreements (PPA)^*1 to the Mazda KD Center, scheduled for completion in November, and to the Miyoshi Plant, which includes an battery energy storage system. ^*2

At the Miyoshi Plant, ORIX Corporation (ORIX) will install solar power generation equipment as the PPA provider. The generated electricity will be consumed on-site, and any excess solar power will be stored in a battery energy storage system that uses new automotive lithium-ion batteries. This will allow Mazda to effectively utilize surplus solar power and reduce peak electricity demand.

At the Mazda KD Center, ORIX will also install solar power generation equipment as the PPA provider. Toyo Kohan Co., Ltd., a steel sheet product manufacturer, will utilize the environmental value^*3 associated with surplus electricity. These efforts will contribute to the increased use of renewable energy throughout the region's total supply chain.

Mazda aims to contribute to the region’s sustainable development and enhancement of the industrial competitiveness by working with its partners to demonstrate and implement a range of carbon-neutral technologies, drawing on their respective strengths.

Mazda will continue to collaborate with like-minded partner companies to advance initiatives toward carbon neutrality. These initiatives include expanding the use of renewable energy and creating a positive impact on communities, the environment, and society.

■Expansion of Renewable Energy through Regional Collaboration and Battery Energy Storage System

■Overview of On-site PPA

• *1  A system in which a power producer installs solar power generation equipment on a customer’s premises and supplies them with electricity generated from renewable energy, along with associated environmental value.
• *2  A system that stores surplus solar power and other electricity in batteries for use during periods of high electricity demand, thereby enabling the effective use of renewable energy and reducing peak electricity demand.
• *3  The environmental value of electricity generated from renewable energy sources, such as solar power, including the value of reducing CO₂ emissions.
• *4  A system in which the environmental value of electricity generated from renewable energy sources, such as solar power, is traded separately from the electricity itself.