#Japan #Tokyo #Scalar #Corporate PPA #Carbon-Free Energy

Successful Demonstration of 24/7 Corporate PPA

In a notable development in the realm of corporate sustainability, a consortium comprising Mizuho Bank, Mizuho Securities, Mizuho Lease, J-Power, and Scalar has successfully demonstrated the feasibility of a Corporate Power Purchase Agreement (PPA) that ensures a reliable supply of carbon-free energy around the clock. This initiative, referred to as 24/7 CFE (Carbon-Free Energy), aims to enable companies to meet their energy needs with zero carbon emissions, aligning with global trends toward sustainable energy use.

Background and Significance

The global standard for measuring and reporting greenhouse gas (GHG) emissions, known as the GHG Protocol, is currently under revision. Among the key proposed changes is the introduction of Hourly Matching, which requires a one-hour alignment between electricity generation and consumption when claiming reductions in emissions through non-fossil energy sources. This shift is critical for businesses operating on a global scale and their supply chains, who are increasingly focused on real-time and reliable certificates of renewable energy use as well as advanced decarbonization strategies.

As companies worldwide strive for sustainability, the consortium recognized the need for innovative solutions within Corporate PPAs, considering the expected changes in standards. Utilizing their combined expertise in finance, energy, and technology, they conducted rigorous Hourly Matching tests using a diverse array of non-fossil energy sources.

The outcomes of this demonstration aim to facilitate a new type of Corporate PPA that incorporates Hourly Matching—termed 24/7 responsive C-PPA—tailored to the future GHG Protocol revisions.

Demonstration Overview

The demonstration involved collecting power demand data from business locations to verify the effectiveness of Hourly Matching under real operational scenarios. It included gathering power consumption data on an hourly basis and matching it with supply data derived from renewable sources like solar and wind energy, provided by Mizuho Lease's subsidiary ML Power and J-Power.

To ensure reliability, they employed J-Power and Scalar's Environmental Value Platform, which enables detection of data manipulations and offers verifiable records. This collaborative effort confirmed that the conditions for providing a 24/7 responsive C-PPA—such as generation and consumption alignment, multi-source matching, and ensuring traceable environmental value—were met.

Companies' Roles in the C-PPA Development

Moving forward, the consortium plans to leverage the insights gained from this demonstration to help businesses achieve their decarbonization goals and comply with global standards. Here’s a breakdown of the roles:

• - Mizuho Bank & Mizuho Securities: Responsible for developing the 24/7 responsive C-PPA solution and examining finance schemes.
• - ML Power (100% subsidiary of Mizuho Lease): Focused on the generation and supply of renewable energy, particularly solar, alongside providing necessary data.
• - J-Power: Offers a diverse array of renewable energy generation and develops the Environmental Value Platform to assist in matching and data verification for the C-PPA.
• - Scalar: Specializes in data integrity solutions leveraging their Universal HTAP engine, ScalarDB, and data tampering detection software, ScalarDL, to enhance the reliability of environmental value.

Future Directions

According to representatives from the participating companies, this initiative is just the beginning. Mizuho is intensifying its efforts toward achieving a decarbonized society, offering financial and strategic consultations for companies transitioning to renewable energy sources. J-Power continues to advance its extensive knowledge in non-fossil energy, producing services that meet customer needs. Scalar is committed to building reliable and efficient frameworks for proving environmental value, ensuring that companies can align with international standards well ahead of any regulatory changes.

Through this collaboration, these companies aim to establish a pioneering framework for a 24/7 Corporate PPA model, promoting a future where businesses can operate sustainability without compromising their energy needs.