German subsidiary Merck Japan buys electricity from agricultural solar through external PPA

German subsidiary Merck Japan buys electricity from agricultural solar through external PPA

    Merck Electronics (Meguro-ku, Tokyo), a Japanese subsidiary of German pharmaceutical and chemical company Merck, is purchasing electricity through external PPA (power purchase agreement) using its own solar power plants, including agricultural plants. On August 27, it was announced that it had signed a PPA with Chubu Electric Power Miraiz.

    (Source: Merck Electronics)

    New agricultural solar system installation
    (Source: Merck Electronics)

    Chubu Electric Power Miraiz will purchase electricity from newly built solar power plants in Shizuoka and Mie prefectures, which will be used mainly at the Shizuoka plant in Kakegawa City, Shizuoka Prefecture, Merck's semiconductor business base. There are a total of 27 solar power plants. Most of the power plants will be low-voltage commercial power plants, and 90% will be agricultural (solar sharing) type.

    The total output of the solar panels is expected to be 2.7MW, with an annual electricity output of approximately 2.86 million kWh. The project will provide approximately 30% of the electricity Merck uses to develop and manufacture semiconductor materials in Japan, reducing CO2 emissions by approximately 1,315 tons per year. Operations and supplies are expected to begin gradually in fiscal 2024.

    In solar sharing, sakaki are grown under solar panels. Farm operators will be able to earn income from selling electricity in addition to selling agricultural products, which they say will support agricultural management. The operators of the electricity generation and agricultural business were not disclosed.

    Merck has set a goal of being carbon neutral by 2040. By 2030, reduce Scope 1 and 2 greenhouse gas emissions (direct and indirect emissions from purchased electricity) at our facilities by 50% and use renewable energy to provide 80% of purchased electricity across our entire policy.

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