Epson Leads Japan’s Manufacturing Shift to Renewable Energy

TOKYO, November 29, 2024 – Epson, a global technology leader, has set a significant milestone as the first Japanese manufacturer to transition fully to renewable energy, overcoming substantial cost and logistical challenges. This achievement, highlighted in Reuters’ recent The Road to Renewables report, paves the way for broader adoption of renewable energy within Japan’s manufacturing sector and beyond.

Transitioning a manufacturing operation to renewable energy presents notable challenges, particularly in regions like Japan, Taiwan, and Singapore, where renewable electricity is often limited and more costly than conventional sources. Despite these hurdles, Epson demonstrated resilience and a strategic approach by collaborating with suppliers, energy generators, local governments, and industry peers to achieve its sustainability goals.

Since beginning its renewable energy procurement in 2016, Epson has cut its carbon dioxide emissions by 250,000 tonnes. By November 2021, the company had fully transitioned to renewable electricity, setting the stage to reduce CO2 emissions by approximately 400,000 tonnes annually.

Epson’s approach adapts to the specific energy resources available in each country and region. In the Philippines, for example, the company relies on local geothermal and hydroelectric energy, while in Indonesia, it utilises palm kernel shells—a sustainable biomass by-product from the local palm oil industry. For its Sakata semiconductor plant in Japan’s Tohoku region, Epson has partnered with Tohoku Electric Power Co. to secure hydropower through a long-term, stable-pricing agreement.

Partnerships Powering the Transition

The company’s commitment to renewable energy extends beyond its operations, driving the development of new energy sources. In collaboration with Nagano Prefecture and Chubu Electric Power Miraiz Company, Epson has supported the establishment of hydroelectric plants in the region. Two are operational, generating 5,770 kilowatts, with a third set to launch in 2024 and plans for five plants by 2025.

Epson is also constructing a biomass power plant in Nagano that will use wood waste from the Minami Shinshu area, further enhancing its renewable energy capabilities. These initiatives have inspired other companies in the Nagano region to adopt similar measures, amplifying the transition across the local manufacturing industry.

Epson’s environmental ambitions are encapsulated in its Environmental Vision 2050, which aims to make the company carbon-negative and eliminate the use of underground resources by mid-century. To achieve this, Epson plans to invest 100 billion yen (£533 million) over the next decade in decarbonisation and resource recycling efforts.

The investment will support innovative technologies, reduce supply chain greenhouse gas emissions by over 2 million tonnes, and develop products and services that minimise environmental impacts.

Epson’s leadership in renewable energy is expected to inspire wider adoption across Japan’s manufacturing sector. As the commercial and industrial sectors account for half of global electricity use, Epson’s success underscores the critical role businesses must play in accelerating the transition to renewable energy and mitigating climate change.