Otsuka Pharmaceutical Co., Ltd.

Corporate
January 31, 2024

Otsuka Pharmaceutical Installs Solar Power Generation Systems at Tokushima Mima and Other Factories
Accelerating Carbon Neutrality Initiatives

Otsuka Pharmaceutical Co., Ltd. (Otsuka) has announced the launch of solar power generation systems at the company's Tokushima Mima and Tokushima Factories and expanded the existing systems at the Takasaki Factory, with each facility commencing operation. As a result of these initiatives, it is anticipated that the annual CO2 emissions will be reduced by approximately 970 tons across the four domestic plants where these systems have been installed.

Newly installed solar power generation systems at each factory (From left to right: Tokushima Mima Factory, Tokushima Factory, Takasaki Factory)

The Otsuka group is progressing with energy-efficient initiatives as part of its commitment to the environment and goal to achieve carbon neutrality, which was identified as a key material issue. Since 2021, Otsuka has been actively introducing solar power generation systems at Japanese factories. Currently, such systems are operational at four factories, namely Tokushima Itano*1, Takasaki*2, Tokushima*3, and Tokushima Mima*4. Alongside the implementation of CO2-free electricity across all 8 manufacturing facilities*5 in Japan and the adoption of Green Power Certificates*6 for all offices, the Otsuka group introduced a new cogeneration system*7 in January of this year. The aim of the new system was to optimize the supply of electricity and steam to the plants of the Otsuka group companies, thereby further reducing CO2 emissions.

Otsuka Pharmaceutical continues to adopt initiatives to contribute to the realization of a low-carbon, sustainable society by actively introducing renewable energy sources and maximizing the energy-use efficiency.

  • Solar power generation systems at Otsuka Pharmaceutical factories

Tokushima Itano FactoryTakasaki FactoryTokushima FactoryTokushima Mima Factory
Pharmaceutical FactorySoylution FactoryPhase onePhase two
Launch of operations December 2021 January 2023 December 2022 November 2023 November 2023 January 2024
Number of panels 408 panels 1056 panels 544 panels 460 panels 262 panels 717 panels
Estimated generated electricity 898MWh 524MWh 123 MWh 483MWh
CO2Targeted reduction in CO2emissions (annual) 478 tons 170 tons 65 tons 257 tons

Ratio of reduction of factory CO2 emissions attributed to CO2-free electricity + solar-generated electricity

76.9% 64.9% 66.9% 64.2%
  • Initiatives targeting reduction of CO2 emissions implemented to date

・Update of Cogeneration System*7 in the Tokushima Factory Area

In January 2024, we updated the cogeneration system initially set up at the Otsuka Chemical Tokushima Plant in 2007. The new system is designed to minimize environmental impact, maintain an optimal balance in power generation aligned with the operational needs of neighboring Otsuka group factories, and provide both electricity and steam. Anticipated outcomes of this update include a projected reduction of approximately 8,000 tons in the Otsuka group's annual CO2 emissions.

・Introduction of CO2-free electricity at all 8 factories*5 in Japan

Since April 2020, all manufacturing activities have been powered by CO2-free electricity, derived from renewable energy sources that do not emit CO2. This has been implemented at all 8 plants in Japan for all purchased electricity used in production activities.

・Adoption of Green Power Certificates*6

Adoption in 2020 of Green Power Certificates for all offices of five Otsuka group companies*8 in Japan has resulted in replacement of 12.5GWh of annual electricity consumption with green power.

  1. ※1Production of pharmaceutical and nutraceutical business products.
  2. ※2Production of nutraceutical business products.
  3. ※3Production of pharmaceuticals.
  4. ※4Production of pharmaceuticals.
  5. ※5Tokushima Factory, Second Tokushima Factory, Tokushima Wajiki Factory, Tokushima Itano Factory, Tokushima Mima Factory, Saga Factory, Takasaki Factory, Fukuroi Factory, as well as laboratories and offices within the factory premises.
  6. ※6 In the Green Power Certificate system, the environmental added value of power produced from renewable energy sources is certified by a third-party certification entity, with Green Power Certificates issued as tradable items.
  7. ※7Cogeneration System: A system that efficiently utilizes heat and electricity by generating power through engines and turbines using fuels such as city gas while simultaneously recovering the heat generated in the process.
  8. ※8Otsuka group Companies: Otsuka Pharmaceutical Co., Ltd.; Otsuka Pharmaceutical Factory, Inc.; Taiho Pharmaceutical Co., Ltd.; Otsuka Chemical Co., Ltd.; Otsuka Foods Co., Ltd.
    • Carbon neutrality initiatives adopted by the Otsuka group of companies

The Otsuka group of companies has identified carbon neutrality, circular economy, and water neutrality as important areas (materialities) for environmental initiatives. Regarding carbon neutrality, the group has targeted a global medium-term target of a 50% reduction (compared to 2017) in CO2emissions by 2028.

Reference: Otsuka Holdings Co., Ltd. Sustainability Mission - Carbon Neutrality