Announcement Regarding Execution of Power Purchase Agreement (PPA) with Tokyo Gas Co., Ltd. for the Reihoku-Amakusa Wind Power Project

We are pleased to announce that on June 30, 2026, we concluded a long-term Power Purchase Agreement (PPA) for a period of 25 years with Tokyo Gas Co., Ltd. (Minato-ku, Tokyo; President and Representative Executive Officer: Shinichi Sasayama; hereinafter referred to as "Tokyo Gas") concerning the onshore wind power generation project (Reihoku Town and Amakusa City, Amakusa District, Kumamoto Prefecture; 54.6MW; hereinafter referred to as "Reihoku-Amakusa Wind Power"), which we are currently constructing.

Details

1. Purpose

Our company is committed to developing power generation projects using renewable energy sources such as solar, biomass, and wind power, rooted in local communities, guided by our mission and management philosophy: "To build a green and self-sustaining energy system and solve critical social issues." In light of the recent proliferation of AI and the subsequent new construction and expansion of data centers and semiconductor factories, future electricity demand is expected to increase, making the introduction of CO2-free power sources a critical challenge. Furthermore, against the backdrop of recent geopolitical risks and fluctuations in resource prices, expanding the adoption of renewable energy, which functions as a purely domestic energy source and contributes to energy self-sufficiency, is increasingly important from the perspective of Japan's energy security. Under these circumstances, in addition to developing renewable energy power sources, we are promoting initiatives for stable and long-term electricity supply to customers.

(Construction site and construction scenery of Reihoku-Amakusa Wind Power Plant)

This PPA execution is being carried out as part of the collaboration based on the capital and business alliance agreement concluded between our company and Tokyo Gas on April 1, 2024. By concluding a long-term PPA with Tokyo Gas for the entire power generated by this power plant, which is currently under construction, we aim to improve the project's profitability and maximize its business value.

Furthermore, based on this capital and business alliance, we will continue to consider equity participation and joint development with Tokyo Gas for several domestic onshore wind power projects currently under development by our company, and further expand our collaboration in the renewable energy field. By combining Tokyo Gas's electricity offtake capabilities and supply-demand adjustment capabilities, backed by its extensive customer network, with our company's development capabilities, which Tokyo Gas recognizes as including local consensus-building, engineering, and project finance structuring, we will promote the expansion of renewable energy adoption and contribute to the realization of a sustainable decarbonized society.

2. Future Outlook

The impact of this PPA execution has already been incorporated into our earnings forecast for the current fiscal year (ending March 2027). We will promptly disclose any matters that require public announcement in the future.

(Reference) Overview of the Reihoku-Amakusa Wind Power Project *1

Power Plant Name: Reihoku-Amakusa Wind Power Plant

Construction Site: Reihoku Town, Amakusa District, Kumamoto Prefecture

Equipment Capacity: 54.6MW

Estimated Annual Power Generation: 109,000MWh

Electricity Purchaser: Tokyo Gas

Contract Period: 25 years

Operation Start: Fiscal Year 2027 (scheduled)

*1 The overview of the project is based on the plan at the time of this announcement and is subject to change in the future.