Manufacturing consumes a vast amount of electricity, far exceeding the energy needs of office operations. In certain countries or regions, such as Japan, Taiwan, and Singapore, where renewable energy supply is limited, the cost of renewable electricity is much higher than that of electricity generated from traditional sources. This price difference poses a significant challenge for businesses that purchase renewable electricity, placing a future cost burden on companies aiming to make the switch.
In the The Road to Renewables report by Reuters, Epson, a global leader in technology, reveals that it is the first among Japan’s domestic manufacturers to overcome the major cost hurdles of fully transitioning to renewable electricity. This milestone is not only a win for Epson but also sets a benchmark for the Japanese manufacturing industry as a whole, demonstrating that such a transition is possible even in regions with high energy costs and infrastructure challenges.
Epson’s Commitment to Renewable Energy
Despite the substantial costs involved, Epson remained committed to sustainability and its goal of transitioning to 100% renewable energy. Epson’s dedication to this cause was supported by partnerships with suppliers, electricity generators, local governments, and other manufacturers. These collaborations played a crucial role in facilitating Epson’s shift to renewable electricity, proving that such a change can be accomplished with the right partnerships and strategies in place.
Epson began procuring renewable electricity as early as 2016, making a significant step towards reducing its carbon footprint. By November 2021, Epson had successfully reduced its CO2 emissions by 250,000 tons. This reduction marked the company’s full transition to renewable electricity, achieving a milestone that many other companies have yet to reach. Epson’s shift is projected to further reduce its carbon dioxide emissions by approximately 400,000 tons annually.
With this transition, Epson has set a precedent for other companies in Japan’s manufacturing sector. The company’s success demonstrates that it is possible to implement widespread renewable energy solutions within the industry, encouraging other companies to follow suit and make similar moves towards sustainability. The shift also signals the growing importance of renewable energy in shaping the future of manufacturing.
Tailored Renewable Energy Solutions for Local Conditions
Epson’s approach to transitioning to renewable energy is tailored to the specific conditions of each region in which it operates. The company recognizes that energy availability and infrastructure vary from one location to another, so it customizes its strategies to take advantage of the most suitable energy resources available in each region.
In the Philippines, for instance, Epson sources its renewable energy from local geothermal and hydroelectric sources, both of which are abundant in the region. In Indonesia, Epson has capitalized on the local palm industry, utilizing palm kernel shells (PKS) as a sustainable biomass energy source. These PKS are derived from the palm trees that are widely grown in the region, making them an ideal renewable energy resource.
In Japan’s Tohoku region, Epson relies on hydropower from Tohoku Electric Power Co. to supply its semiconductor plant in Sakata. This partnership allows Epson to secure a stable and consistent electricity supply at a reliable price over an extended period, ensuring that its operations are powered by renewable energy. By adapting to local energy resources and infrastructure, Epson effectively addresses the challenges of renewable energy availability in different regions.
Powering the Transition Through Strategic Partnerships
Epson’s commitment to sustainability extends beyond its internal operations. The company actively participates in collaborative efforts to advance renewable energy solutions, focusing on principles of efficiency, compactness, and precision. These principles are at the core of Epson’s management philosophy, known as sho-sho-sei.
In Nagano Prefecture, Epson has joined forces with Chubu Electric Power Miraiz Company, Inc. to develop hydroelectric power plants. To date, two plants are operational, generating a total of 5,770 kilowatts of electricity, with a third plant set to begin operation in 2024. By 2025, Epson plans to increase this total to five plants. These initiatives not only help Epson meet its renewable energy goals but also encourage other companies in the Nagano region to adopt renewable energy solutions, further accelerating the adoption of clean energy in the manufacturing sector.
Additionally, Epson is building its first Biomass Power Plant in Nagano, which will use unused wood from the Minami Shinshu area. This further demonstrates Epson’s commitment to sustainable energy solutions and its efforts to support the development of new power sources.
Environmental Vision 2050: Epson’s Carbon Negative Commitment
Looking ahead, Epson has set an ambitious goal to become carbon negative by 2050. To achieve this, the company plans to invest 100 billion yen (approximately $700 million USD) over the next decade. This investment will focus on decarbonization efforts, resource recycling initiatives, and the development of innovative environmental technologies.
Epson is also working to reduce greenhouse gas emissions in its supply chain by over 2 million tons. In addition to focusing on its own carbon footprint, Epson is committed to helping its customers minimize their environmental impact. This aligns with the company’s vision of supporting industries in transitioning to renewable energy, as commercial and industrial sectors account for half of global electricity consumption.
Through these efforts, Epson is not only transforming its operations but also contributing to the broader movement toward a sustainable future.
For more information on Epson’s journey to 100% renewable energy, refer to the full The Road to Renewables report by Reuters.
