ORIX Real Estate Begins Supplying Electricity from 100% Renewable Energy Sources for the First Time at Its Environmentally Considerate Logistics Facility, Matsubushi Logistics Center – EQ Mag Pro
TOKYO, Japan : ORIX Real Estate Corporation (“ORIX Real Estate”) announced that it has installed a solar power generation system using on-site PPA at its existing Matsubushi Logistics Center (“Matsubushi LC”; Kitakatsushika-gun, Saitama), and that it will begin supplying electricity from 100% renewable energy sources to tenants at the facility today.
In this initiative, a solar power generation system with a capacity of 1,713 kW has been installed on the roof of the Matsubushi LC under the power purchase agreement (PPA) model*
1, and the generated electricity will be consumed within the facility. Also, in the event of power insufficiency during the night or due to weather conditions, ORIX Corporation will supply electricity using Non-fossil Certificates (with tracking certification) to cover the power to be used in the facility with electricity from 100% renewable energy sources. In addition, environmental value of electricity from 100% renewable energy sources will be provided to tenants upon request. Excess electricity will be sold using the FIT or FIP programs*
2. This initiative is expected to enable the Matsubushi LC to reduce CO2 emissions by approximately 970.8 tons per year*
3. ORIX Real Estate is developing environmentally considerate logistics facilities with the aim of realizing a decarbonized society. In addition to acquiring CASBEE certification and installing LEDs throughout the entire facilities, ORIX Real Estate will strive to reduce the environmental impact of its facilities while meeting the needs of tenants by supplying electricity from 100% renewable energy sources.
- PPA is a business model in which a third party borrows the premises or roof of an electricity consumer, installs a solar power generation system there, and supplies the electricity generated by the system to the consumer.
- Abbreviation for Feed-in Tariff and Feed-in Premium. Types of renewable energy purchase programs.
- Based on actual usage from November 2020 to October 2021.
1. Providing Electricity from 100% Renewable Energy Sources and Environmental Value
A solar power generation system has been installed on the roof of the Matsubushi LC, and the electricity generated will be supplied to the entire facility in both common and private areas. In the event of power insufficiency during the night or due to weather conditions, electricity using Non-fossil Certificates (with tracking certification), which is tied to the environmental value of the power plant owned by the ORIX Group, will be supplied to ensure that all power consumption in the facility will be from 100% renewable energy sources.
In addition, the environmental value of electricity from 100% renewable energy sources will be provided to tenants upon request.
Scheme diagram
2. About the Initiative
(1) Initiatives that leverage ORIX Group synergies
ORIX has been involved in the environmental business since 1995 and has installed approximately 1,000 MW worth of solar power generation systems in Japan. This initiative will utilize this expertise to install solar power generation systems on the roofs of logistics facilities, and the ORIX Group will supply power as a retail electric power provider (new power company) to ensure that all power to be used in the facilities will be consistently supplied. ORIX Real Estate developed this initiative by leveraging the synergy of the ORIX Group in order to meet the needs of the tenants and others.
(2) Realization of a stable power supply unaffected by weather and other factors
ORIX is actively promoting renewable energy power generation businesses, including solar, wind, and geothermal, both in and outside Japan. ORIX operates three in-house power plants (Agatsuma Biomass Power Plant, Soma Coal and Biomass Power Plant, and Hibikinada Coal and Biomass Power Plant). Therefore, electricity shortages caused by solar power generation at logistics facilities can be supplied with electricity using Non-fossil Certificates with tracking certification that ties in the environmental value of electricity generated at these group facilities, enabling a stable supply of electricity unaffected by the time of day or weather conditions.
(3) To become energy-creating facilities that create environmental value
As room temperature logistics facilities tend to use less electricity inside the facility for its size of the roof area, the Matsubushi LC is expected to sell about half of the excess electricity it generates, contributing to energy creation by selling electricity through FIT and FIP programs. In addition, since the environmental value derived from the excess electricity generated can be tied to other properties (Non-fossil Certificates with tracking certification), ORIX Real Estate plans to tie this environmental value to facilities owned by the ORIX Group.
3. Future Facilities Subject to the Initiative (as of March 2022)
ORIX Real Estate will introduce this initiative to facilities that it plans to develop in the future. Currently, 13 properties, including those not yet under construction, are scheduled to introduce the initiative.
Logistics facilities where construction has already started
| Name | Area | Date of completion (planned) |
|---|---|---|
| Minoh Logistics Center | Minoh, Osaka | End of March 2022 |
| Ichikawa-Shiohama II Logistics Center | Ichikawa, Chiba | End of December 2022 |
| Moriya II Logistics Center | Joso, Ibaraki | End of January 2023 |
| Tsurugashima II Logistics Center | Iruma, Saitama | End of February 2023 |
| Kazo Logistics Center | Kazo, Saitama | End of April 2023 |
4. Overview of the Matsubushi LC
The Matsubushi LC is a large-scale multi-tenant logistics facility completed in March 2019. In addition to its convenient access to the Tokyo-Gaikan Expressway and Japan National Route 16, at the shared area, based on the concept of “promoting health while working,” there are a café lounge with free Wi-Fi where people can refresh such as during break time, an expansive outdoor terrace, and a fitness room.
Overview of Matsubushi Logistics Center
| Location | 608-5 Okawado, Oaza, Matsubushi-machi, Kitakatsushika-gun, Saitama |
|---|---|
| Total floor area | 77,372.32 m2 |
| Number of tenants | 4 (All already tenanted) |
| Total capacity of solar power generation systems | 1,712.945 kW |
|---|---|
| Number of solar panels | 365W × 4,693 |
5. ORIX Real Estate’s Logistics Facilities Development
To date, ORIX Real Estate has invested in and developed 43 logistics facilities, mainly in the Tokyo, Nagoya, and Osaka areas. Currently, ORIX Real Estate is working to develop environmentally considerate logistics facilities, and is promoting environmentally considerate initiatives such as acquiring CASBEE certification, installing LED lighting throughout the facilities, and installing electric vehicle (EV) charging stations. In the future, ORIX Real Estate plans to further reduce the environmental impact of its logistics facilities by supplying electricity from 100% renewable energy sources to all of its properties.
The real estate business division of the ORIX Group has established a Sustainability Promotion Policy and is promoting initiatives in each of its businesses under four key topics: Transition to Carbon-Free, Environmental Considerations, Safety, Security, and Comfort, and Coexistence with Regional Communities. ORIX Real Estate will continue its efforts to solve social issues through its business activities.
About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 28 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society.
