Kato Works Leverages Solar Power to Boost Sustainability
Kato Works Ltd., headquartered in Shinagawa, Tokyo, is taking a significant step towards sustainability by installing solar power systems at its Gunma factory located in Ota City, Gunma Prefecture. Set to be operational by April 2026, this initiative is expected to result in a substantial reduction of CO2 emissions—approximately 1,165 tons annually, equivalent to the emissions produced by about 300 households.
Background of the Initiative
The push for this solar power installation aligns with Kato Works’ medium-term management plan for 2025 to 2027, which emphasizes the practical implementation of sustainability in business operations. With a firm commitment to minimizing environmental impact, Kato Works has already undertaken various energy-saving measures, including the installation of LED lighting in its facilities. The new solar power system will further enhance its efforts to utilize renewable energy and significantly decrease carbon emissions.
Details of the Solar Power Installation
The solar power facilities will be installed on part of the roof of the Gunma factory building, covering an area of approximately 9,853 square meters. The installation is scheduled for completion in February 2026, and the generated electricity will primarily be used for on-site consumption within the facility. Any excess electricity produced during non-working days will be sold in the wholesale electricity market.
Key Specs:
- - Location: Gunma Factory
- - Installation Timing: February 2026
- - Starting Operation: April 2026
- - Annual Expected Generation: Approx. 2.76 million kWh
- - On-Site Consumption: Estimated 1.66 million kWh on operational days
- - Electricity Supply Duration: Until 2046
Positive Impact and Utilization
The solar installation will be based on an On-Site Power Purchase Agreement (PPA). This innovative approach allows the electricity generated by the solar panels to be purchased and consumed by the factory, thus fostering greater energy independence and sustainability.
The anticipated annual electricity generation of approximately 2.76 million kWh means that Kato Works expects to cover around 60% of the Gunma factory's annual electricity needs. Additionally, surplus electricity produced during non-working days will be sold off, maximizing the utility of renewable energy while generating extra revenue.
The environmental value associated with the sold electricity, represented through non-fossil certificates, will be credited to the company's CO2 reduction achievement, contributing to its sustainability goals.
Future Commitments
Kato Works aims to reduce CO2 emissions by 38% by fiscal year 2030, from its baseline in 2018. The activation of the solar power systems is expected to accelerate the company's efforts towards achieving this ambitious target. By continuing to invest in renewable energy and energy efficiency initiatives, Kato Works intends to mitigate its environmental impact and contribute to a sustainable society.
Company Overview
- - Name: Kato Works Ltd.
- - Location: 1-9-37 Higashi-Ooi, Shinagawa-ku, Tokyo 140-0011, Japan
- - Established: January 1935 (Founded in 1895)
- - Business Scope: Manufacturing and sales of construction cranes, hydraulic shovels, and other products
- - Website: Kato Works
As companies globally strive for sustainable operations, Kato Works’ proactive measures in adopting solar energy serve as a compelling example of how industries can effectively contribute to a greener future.