Manufacturing demands vast amounts of electricity, far exceeding the energy required to power offices. In regions like Japan, Taiwan, and Singapore, where renewable electricity supply is limited, the cost of green energy remains significantly higher than conventional sources, posing financial challenges for companies committed to sustainability.
Overcoming Cost Barriers to 100% Renewable Energy
According to Reuters’ The Road to Renewables report, Epson has become the first company in Japan’s domestic manufacturing sector to fully transition to renewable electricity, despite the financial hurdles. This milestone serves as a model for the industry, encouraging manufacturers to adopt sustainable energy solutions.
Despite the high costs associated with renewable energy adoption, Epson remained steadfast in its commitment to sustainability. Strategic collaborations with suppliers, electricity providers, local governments, and industry partners played a crucial role in achieving this transition.
Pioneering a Full Renewable Energy Transition
Epson began procuring renewable electricity in 2016 and, by November 2021, had successfully reduced 250,000 tons of CO2 emissions. Today, the company’s complete shift to renewable energy is expected to cut carbon dioxide emissions by approximately 400,000 tons annually.
To navigate regional energy challenges, Epson tailors its renewable energy strategies to local conditions:
- Philippines: Utilizes local geothermal and hydroelectric sources.
- Indonesia: Leverages biomass energy from palm kernel shells (PKS), derived from the region’s palm industry.
- Japan (Tohoku Region): Secures hydropower from Tohoku Electric Power Co. for its semiconductor plant in Sakata, ensuring a stable electricity supply at controlled costs.
Powering the Transition Through Partnerships
Epson’s sustainability philosophy, rooted in the principles of sho-sho-sei—efficiency, compactness, and precision—extends beyond internal energy generation. The company actively supports the development of new renewable energy sources through strategic partnerships.
Epson collaborates with Nagano Prefecture and Chubu Electric Power Miraiz Company, Inc. to develop hydroelectric power plants in Nagano. Two plants are already operational, producing a combined 5,770 kilowatts, with a third scheduled for completion in 2024 and a total of five plants planned by 2025.
Additionally, Epson is constructing its first biomass power plant in Nagano, utilizing unused wood from Minami Shinshu to further its renewable energy efforts. This initiative has also encouraged other manufacturers in the region to accelerate their adoption of renewable energy.
Environmental Vision 2050: A Carbon-Negative Future
Epson aims to become carbon negative and eliminate the use of underground resources by 2050. To support this vision, the company is investing 100 billion yen ($700 million USD) over the next decade in decarbonization, resource recycling, and the development of innovative environmental technologies. These efforts are expected to reduce supply chain greenhouse gas emissions by over 2 million tons.
As commercial and industrial sectors account for nearly half of global electricity consumption, businesses must lead the transition to renewable energy. Epson’s commitment to sustainability not only advances its environmental goals but also sets a precedent for the entire manufacturing industry.
For more insights into Epson’s renewable energy journey, read the full The Road to Renewables report by Reuters.
