ITOCHU's Clean-tech Business

We engage in environmental clean-tech businesses that are projected have sustainable growth from a business perspective and are projected to contribute to society's shift toward decarbonization and circular economy. In doing so we employ a mid-to-long-term perspective in our business outlook and aim to leverage the latest technology available.

1. Renewable Energy

ITOCHU is involved in various aspects of power generation projects, aiming to optimize and maximize power generation efficiency. These include construction and refurbishment projects for all types of power plants worldwide, Independent Power Producer (IPP) businesses, as well as the operation and maintenance of power plants.

Within the business activities introduced above, we are proactively promoting power generation methods that leverage renewable energy sources such as geothermal, wind, solar, and biomass. We are aiming for a renewable energy ratio of over 20% (equity interest basis) by FYE2031 within our overall power generation business.

ITOCHU will continue to proactively promote power generation businesses that utilizes renewable energy in and outside of Japan. This will allow us to contribute to global sustainability agreements that aim to create a decarbonized economy to mitigate climate-related impacts.

Renewable energy generation (equity interest basis)

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Target for renewable ratio of total generation

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Breakdown of ITOCHU's total generation in FYE2020 and breakdown target for FYE2031
FYE2020 FYE2020 FYE2031 (Target)
Generation capacity on equity interest basis (MW) Ratio (%) Ratio (%)
Wind

185

13%

20%<

Solar/PV Power

83

Geothermal

83

Biomass

20

Renewable Energy (total)

369

Natural gas

1,621

87%

80%>

Coal-fired power

955

Thermal Power (total)

2,576

Grand total

2,945

100%

100%

For a list of our renewable energy-related businesses please visit here.
We have announced a policy to not engage in new coal-fired power plant developments or the acquisition of interests in coal-fired power plants*.

Renewable Energy Highlights

Wind Power

ITOCHU has continued involvement in wind power (offshore and onshore) from the late 1990s. Currently, ITOCHU has interests in six power plants in Japan, the United States, and Germany, some of which are currently under development.

Butendiek Offshore Wind Farm in the North Sea of Germany
[Photo]
The Butendiek Offshore Wind Farm

The demand for renewable energy is increasing. Against this backdrop, we have signed a strategic business and capital alliance with the CITIC Group to cooperate in a top-scale offshore wind farm (288MW) operating in the North Sea of Germany. The wind farm supplies power to approximately 370,000 standard German households, contributing to the transition to a low-carbon society.

Solar Power/PV Power

ITOCHU is involved in six large-scale solar power plants in Japan, the United States, and in Spain. ITOCHU also has a capital alliance with VPP Japan, owning roof-top solar panels worth approximately 10MW. We aim to increase this to 100MW by FYE2022.

Supplying Clean Energy with the Power of Sunlight
Saga-Ouchi Solar Power Plant
[Photo]
Saga-Ouchi Solar Power Plant
– ITOCHU's fourth solar power plant in Japan –

The commercial operation of the Saga-Ouchi Solar Power Plant (power generation output: approximately 17,000 kilowatts) began in April 2018. Located in Ouchi, Karatsu, at the date of construction, this power plant was the largest mega solar (large solar power plant) in Saga Prefecture – the fourth mega solar we operate in Japan following those in Ehime, Oita and Okayama. The plant is projected to operate for 20 years under the cooperation of ITOCHU and Kyudenko Corporation. The estimated amount of annual power generation for this plant is approximately 24 million kilowatt-hours, equivalent to the annual power consumption of approximately 4,200 standard households, while at the same time contributing to the CO2 emissions reduction of approximately 11,000 tons per year.

Geothermal Power

ITOCHU has interests in an IPP project for Indonesia's Sarulla Geothermal Power Plant, one of the largest of its kind in the world. The financial closure of the $1.17bn project was announced in May 2014, being co-financed by the Japan Bank for International Cooperation (JBIC), the Asian Development Bank (ADB), and other commercial banks. This the first of its kind aimed at the IPP of a geothermal power plant.

Biomass

ITOCHU aims to contribute to the sustainable supply of biomass fuel by streamlining financing processes and leveraging construction and operation knowledge regarding such power plants.

2. Energy storage systems (ESS)

ITOCHU aims to promote de-carbonization and reduce environmental footprint by selling energy storage systems (ESS) that enhance and optimize the sustainable supply of renewable energy. As a demonstration of our commitment, we have set a clear sales target for ESS: 50 billion JPY by FYE2030. Subsequently, by FYE2031 we aim to reach a cumulative energy storage of 5,850,000kwh, which is approximately 22 times that of our baseline FYE2020 performance.

Moving forward, we plan to strengthen our global energy procurement and sales network outreach. We also plan to expand our presence in foreign markets (especially in growing markets such as the United States and Australia), as well as our presence in application areas such as industrial use, ESS for large-scale commercial power supply, and the reuse and recycling of car batteries. ITOCHU believes that the culmination of these efforts will enhance our social impacts as well as elevate our corporate value proposition.

Sales and Cumulative Energy Capacity of our ESS products

In cooperation with NF Corporation, ITOCHU Corp. developed Smart Star, a unique ESS approximately 30,000 units as of March 2019. With Smart Star being one of our main product lines, we have shown a steady increase in sales and cumulative energy capacity of the ESS products we have sold.

Annual sales of ESS (1m JPY)

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Cumulative capacity of ESS units sold (kwh)

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Other Initiatives

The launch of next-generation ESS products using AI technology
[Photo]
External view of the Smart Star

ITOCHU signed a capital partnership with UK company Moixa Energy Holdings Ltd., NF Corporation and TRENDE Inc. to create a next-generation ESS that utilizes AI technology. This project has allowed for us to build upon the high performance of our Smart Star L during power-outages, and further enhance it by employing an AI system that analyzes weather forecasts, fluctuations in power consumption rates, and fluctuations in solar power generation to optimize its control mechanisms and maximize efficiency.

Capital and Business Alliance with Sunnova Energy Corporation to Promote the Service and Capabilities of Energy Storage Systems in the United States

ITOCHU has made an equity investment in Sunnova Energy Corporation, the leading privately-held residential solar power and storage services provider in the United States. ITOCHU's investment in Sunnova, and the two company's proposed strategic partnership, furthers both company's support of solar plus storage services and products that can be deployed at scale.

As more utilities seek to decrease net metering credits offered to customers in the United States, ITOCHU believes that ESS demand will increase for households that need to store solar-powered energy generated and for households that require energy savings in the event of a short or long-term grid outage. Against this backdrop, Sunnova and ITOCHU intend to collaborate on the development of ESS solutions suitable for the U.S. market. Together, we intend to leverage "GridShare Client," the AI software of Moixa Energy Holdings Ltd. (U.K.) in which ITOCHU owns an equity stake, for Sunnova's solar systems.

3. Water Infrastructure

ITOCHU identifies water-related businesses as a strategic priority. This is due to our understanding that such demands will increase given global climate change trends projecting drastic changes in rainfall as well as changes in demography especially in emerging economies. We globally engage in water-related businesses such as seawater desalination, water treatment, and contracting projects, aiming to contribute solutions to the increasing water problems around the world.

Contracting projects for water supply and distribution in Europe

In 2012, ITOCHU acquired an equity position in the Bristol Water Group (U.K.), making us the first Japanese company to participate in water service businesses in the U.K. The Bristol Water Group provides comprehensive water services   from water source management to clean water treatment, water supply and distribution, billing and collection, and customer services   to approximately 1.2 million people.
In 2014, ITOCHU acquired an equity position in CANARAGUA CONCESIONES S.A. (Spain), making us the first Japanese company to participate in water service businesses in Spain as well. CANARAGUA CONCESIONES S.A. provides water supply and distribution services to a total of 1.3 million people in the Canary Islands under a concession agreement with the local government.

Seawater desalination

We have invested and are participating in a seawater desalination project in Victoria, Australia. This facility is capable of satisfying the water demands of approximately 30% of the population of Melbourne, Victoria, supporting the stable supply of water in the area since 2012.
We have invested and are participating as the largest shareholder in a seawater desalination project with the Oman Power and Water Procurement Company (OPWP), which is under the umbrella of the Oman government. The project, situated in Barka, a northern region of the country, is the largest seawater desalinization project in the country, subject to a daily volume of 281,000 m3. The facilities involved use reverse osmosis membrane (RO membrane) to desalinate the water and are projected to operate for 20 years. The plant has started commercial operation in June 2018.

Other initiatives

The development and sales of seawater desalinization plants and reverse osmosis membranes
Stable supply of life-sustaining water
[Photo]
Seawater desalinization plant
– Seawater desalinization business largest in Oman –

We have invested and are participating as the largest shareholder in a seawater desalination project with the Oman Power and Water Procurement Company (OPWP), which is under the umbrella of the Oman government. The project, situated in Barka, a northern region of the country, is the largest seawater desalinization project in the country, subject to a daily volume of 281,000 m3. The facilities involved use reverse osmosis membrane (RO membrane) to desalinate the water and are projected to operate for 20 years. The plant has started commercial operation in June 2018.

4. Green Buildings

ITOCHU's construction and real estate group and its subsidiaries are committed to providing real estate and distribution services, especially in housing and commercial facilities as well as distribution facilities and housing complexes, that are sustainable and relevant to everyday life. We aim to do so by being involved throughout the value chain, from the development to the operation and management of real estate products to streamline and optimize the solutions where we can, utilizing smart city concepts and emerging technologies such as IoT (Internet of Things).

Real Estate Business in Japan

ITOCHU engages in real estate primarily through its subsidiaries. Advance Residence Investment Corporation, a listed residential real estate investment trust (REIT) that is a subsidiary to ITOCHU, identifies sustainability as a top priority and is well regarded for its performance. For example, it participates in GRESB, a sustainability rating framework for real estate investors, and has 15 real estate assets with DBJ Green Building certifications, which accounts to 25.3% in surface area, and 5.6% in number of units among its entire portfolio. At ITOCHU Advance Logistics Investment Corporation, a listed REIT focused on logistics assets, we own 5 assets with DBJ Green Building certifications, which accounts to 65.5% in surface area, and 55.6% in number of units among its entire portfolio.

Overseas Housing Complex Business

ITOCHU is involved in housing complexes throughout Asia, from the development, management, and operation of assets. In Indonesia, we are involved in the Karawang International Industrial City (KIIC) project, which covers a surface area of 1,400ha with residents from more than 150 companies. The KIIC is equipped with infrastructures to ensure its stability, such as an industrial water plant, effluents water plant, and an emergency backup water reserve. Furthermore, we have taken measures to ensure the safety and security of the residents by implementing 24-hour security, maintaining a cooperate and communicative relationship with the local police authorities, securing emergency lines to request fire and medical related assistance. We have also considered an environmental sustainability perspective in the design of the KIIC by implementing smart street lights*, the first of its kind in Indonesia's housing complexes.

  • Smart street lights: An IoT solution that maximizes the efficiency and efficacy of LED its brightness adjustments. To date approximately 1,200 have been installed in KIIC.

5. Other clean-tech businesses (links)