September 27, 2022

• Osaka Gas Co., Ltd.
• GPSS Holdings Inc.
• Tokyu Corporation
• Tokyu Recreation Co., Ltd.
• Tokyu Power Supply Co., Ltd.

Osaka Gas Co., Ltd. (President: Masataka Fujiwara, “Osaka Gas”), GPSS Holdings Inc. (CEO: Masaaki Mezaki, “GPSS”), Tokyu Corporation (President: Kazuo Takahashi, “Tokyu”), Tokyu Recreation Co., Ltd. (President: Shinzo Kanno, “Tokyu Recreation”), and Tokyu Power Supply Co., Ltd. (President: Kenji Murai, “Tokyu Power Supply”) are pleased to announce that they will jointly work on building an off-site corporate PPA model*¹ that utilizes new medium- and small-sized solar power plants (the “Project”).

In the Project, Osaka Gas and GPSS will newly develop medium- and small-sized solar power plants, and the renewable electricity supplied from these power plants is planned to be used by large-scale complex facilities owned and (being) developed by Tokyu and Tokyu Recreation. The Project has been selected as a recipient of the Subsidy for Promoting Consumer-led Introduction of Solar Power Generation (Main Budget for FY2022) (the “Subsidy”),^{*2, 3} which is publicly offered by the Ministry of Economy, Trade and Industry.

More specifically, GDsPJ LLC, in which Osaka Gas and GPSS each have a 50% stake, will first develop eight new non-FIT and non-FIP solar power plants in Japan with a total generation capacity of approximately 9,000 kW, and the power plants will generate renewable electricity with additionality. Then, through coordination by Tokyu Power Supply, this electricity will be used stably over the long term by the following three large-scale complex facilities owned and (being) developed by Tokyu and Tokyu Recreation as part of the electricity they use: Shibuya Stream, Grandberry Park, and Tokyu Kabukicho Tower. The Project will be Japan’s first*⁴ project by a real estate developer, a renewable energy developer, and an energy company to build an off-site corporate PPA model with the Subsidy.

For the achievement of the Japanese government’s goal of going carbon neutral by 2050, various stakeholders need to collaborate to promote not only the production of renewable energy but also its consumption with the aim of making renewable energy the main power source.

With the aim of further expanding their collaboration in the renewable energy business, the five companies will strive for the realization of a decarbonized society through the development of renewable energy power plants and urban development that utilizes renewable energy.

・Schematic diagram of the Project

• *1: An electricity supply and procurement method in which electricity producers, electricity retailers, and consumers enter into long-term, fixed-price electricity purchase contracts on the premise that electricity is supplied from a remote power plant to the demand location through a power transmission and distribution system
• *2: To realize Japan’s long-term energy supply and demand outlook for FY2030 and achieve the nation’s ambitious goal of reducing greenhouse gas emissions, the Subsidy is meant to subsidize part of the cost incurred by consumers in the introduction of solar power generation facilities through collaboration with power producers. On September 21, 2022, the Project was selected to receive the Subsidy.
• *3: Osaka Gas has established an operating company with JAG Energy Co., Ltd. and another with Sky Solar Japan Co., Ltd. These operating companies have been selected as recipients of the Subsidy for Promoting Consumer-led Introduction of Solar Power Generation (Supplementary Budget for FY2021), and they plan to develop solar power plants with this subsidy.
• *4: According to a joint survey by the five companies on past projects

Attachment 1: The three Groups’ individual efforts related to renewable energy

• The Daigas Group

In June 2021, Osaka Gas signed an agreement with GPSS on the joint development of medium- and small-sized solar power plants.*¹ Osaka Gas has been considering how to further develop renewable energy power sources, and the Project is part of such efforts. Furthermore, in January 2021, the Daigas Group announced its “Carbon Neutral Vision,” which outlines the following efforts toward the realization of a carbon-neutral society by 2050: carbon neutrality of raw materials for city gas production mainly by methanation using renewable energy and hydrogen, and the decarbonization of power sources mainly through the introduction of renewable energy. However, technological innovation for the realization of a carbon-neutral society takes a considerable amount of time and social cost. Therefore, as a milestone toward the goal, the Group set a target of contributing to the development of renewable energy power sources worth 5,000 MW^*2 both in Japan and overseas, including in-house development/ownership and procurement from other companies, by FY2030. The Group’s contribution to the development of renewable energy power sources, including in-house development/ownership and procurement from other companies, is worth about 1,500 MW so far.

• The GPSS Group

In June 2021, GPSS signed an agreement with Osaka Gas on the joint development of medium- and small-sized solar power plants.*¹ GPSS has been considering how to further develop renewable energy power sources, and the Project is part of such efforts. To realize a Sustainable Society beginning from the Local Community, the GPSS Group has been running the business of relating sustainable energy with the gifts of nature (resources that can continue to be used without being depleted, including solar, geothermal, water, wind, and waste). We utilize these potentials that all exist in the local regions in the form of a joint project with each community.

• The Tokyu Group

In the “Environmental Vision 2030” it announced at the end of March 2022, the Group set “11 Actions” to take toward the realization of a decarbonized and recycling-based society. One of the actions is to “create renewable energy,” and the Project is part of the Group’s efforts to promote this. In its promotion of urban development, the Tokyu Group has placed importance on “harmony between people, towns, and the environment.” Shibuya Stream is part of the development of Shibuya into an environmentally advanced city. This facility promotes the coexistence of people and nature in an urban center, and one example of such efforts is a revamp of the Shibuya River under a public-private partnership. Minami-machida Grandberry Park is a new town that integrates a station, a commercial facility (Grandberry Park), and a park. Tokyu Kabukicho Tower is a skyscraper complex housing hotels and entertainment facilities, which is scheduled to open in April 2023. These three facilities are symbols of new and recent urban development projects the Group has been promoting in Shibuya and the areas along Tokyu lines in close collaboration with the local communities. The Project, which will take place in these symbolic facilities, will secure a foothold for the Group for the achievement of one of its most important goals—harmony between towns and the environment.

• *1: Osaka Gas and GPSS Holdings Sign an Agreement on the Joint Development of Medium- and Small-sized Photovoltaic Power Plants (released on June 22, 2021)
• 　　　https://www.osakagas.co.jp/en/whatsnew/__icsFiles/afieldfile/2021/06/30/210622.pdf
• *2: The renewable energy mentioned here includes energy from power sources to which the FIT program applies, such as solar, wind, and biomass power.

Attachment 2

Overview of the large-scale complex facilities to which renewable energy will be supplied

(1) Shibuya Stream overview

Facility developers: Tokyu Corporation, etc.

Location: 3-21-3 Shibuya, Shibuya-ku, Tokyo, Japan

Primary uses: Offices, stores, a hotel, a concert hall, and parking

Ground area: Approx. 7,100 m²

Total floor area: Approx. 116,000 m²

Number of stories: 35 above ground and four underground

Official website: https://shibuyastream.jp/

Shibuya Stream is a large-scale complex facility developed as part of a project to redevelop the site of Toyoko Line Shibuya Station’s platforms and tracks and the area around it. Under a public-private partnership, the Shibuya River was revamped to have revetments where clear processed water rolls down like fountains. The facility has open spaces (“hiroba”) and a leafy promenade, offering a rare relaxing waterfront area.

“Shibuya Slow Stream” is held regularly at Inaribashi Hiroba and Konnoubashi Hiroba, which are in front of Shibuya Stream, and on the Shibuya River Street along the Shibuya River, creating a lively bustle and personal exchanges. This event is always held with an activity to clean the area along the Shibuya River to help beautify the environment.

(2) Minami-machida Grandberry Park^*1 overview

Grandberry Park (a commercial facility) overview

Facility developers: Tokyu Corporation and Tokyu Recreation Co., Ltd.

Facility operator: Tokyu Malls Development Corporation

Location: 3-3-1, 3-4-1, etc. Tsuruma, Machida City, Tokyo, Japan

Number of stores: 244

Ground area: Approx. 83,000 m²

Total floor area: Approx. 151,000 m²

Official website: https://gbp.minamimachida-grandberrypark.com/en/

Minami-machida Grandberry Park is a public-private project to redevelop urban infrastructure, a commercial facility, a city park, and a station in an integrated manner with a mix of bustle and nature. In 2020, the complex facility was recognized for its landscape design using green infrastructure*² and other environmentally friendly efforts and awarded Gold certification for LEED ND (Neighborhood Development) and LEED NC (New Construction). LEED®*³ is an international environmental certification program. LEED ND Gold certification was granted for the development area including the station building, while LEED NC Gold certification was granted for the station building architecture. These were Japan’s first ever LEED ND and NC Gold certifications granted.

In 2022, Machida City and Tokyu signed an agreement on the promotion of environmental measures at Minami-machida Grandberry Park with the aim of creating a sustainable urban community.

• *1: Minami-machida Grandberry Park consists of Grandberry Park (a commercial facility), a station, Tsuruma Park, and the Park-life Site.
• *2: Green infrastructure is an urban flood control initiative that utilizes functions of the natural environment as life support infrastructure in addition to conventional runoff control measures, such as regulating reservoirs and detention tanks.
• *3: LEED^® is an evaluation and certification program provided by the U.S. Green Building Council (USGBC). The program contributes to the design, construction, and maintenance of high-performance green buildings. LEED^® and its logo are registered trademarks of the USGBC and may not be used without permission.

(3) Tokyu Kabukicho Tower (Kabukicho 1-chome area development plan) overview

Facility developers: Tokyu Corporation and Tokyu Recreation Co., Ltd.

Location: 1-29-1 Kabukicho, Shinjuku-ku, Tokyo, Japan

Primary uses: Hotels, a theater, a movie theater, stores, and parking

Ground area: 4,603.74 m²

Total floor area: Approx. 87,400 m²

Number of stories: 48 above ground, five underground, and one rooftop tower

Height: Approx. 225 m

Inauguration: April 2023 (scheduled)

Official website: https://tokyu-kabukicho-tower.jp/en/

This urban development project in the Kabukicho area of Shinjuku, one of the world’s leading urban tourism bases, covers the construction of a high-rise complex facility and an airport-bus station and the refurbishment of Seibu Shinjuku Ekimae-dori Street. This complex will house a movie theater, a theater, a concert hall, and other entertainment facilities that showcase diverse cultures, as well as hotels that feature local urban culture such as art and music. Moreover, through area management that integrates this complex with the public space centered on Kabukicho Cinecity Square (adjacent to the complex), this project aims to create a bustling town where people can enjoy strolling around. This project is going smoothly toward the inauguration of the complex, which is scheduled for April 2023.

In addition to such contribution to urban development, this project implements various initiatives to reduce environmental impact and CO₂ emissions, including the introduction of regional air-conditioning, heat load reduction, and efficient use of various energies. This project aims for environmental performance at grade 3 in Tokyo’s environmental evaluation system (based on ERR and PAL) and equivalent to rank A in the CASBEE assessment.

２．Company profiles

GDsPJ LLC

Osaka Gas Co., Ltd. 

GPSS Holdings Inc. 

Tokyu Corporation

Tokyu Recreation Co., Ltd. 

Tokyu Power Supply Co., Ltd.