NGK Group’s Manufacturing Site in Poland Concludes First VPPA
Contribute toward Carbon Neutrality by Purchasing Environmental Value Derived from Renewable Energy

NGK CERAMICS POLSKA SP. Z O.O. (hereinafter “NGK Ceramics Poland”), a subsidiary of NGK INSULATORS, LTD. (hereinafter “NGK”) based in Gliwice, Silesia Province, has entered into a Virtual Power Purchase Agreement (VPPA) with Helios Renewable Energy SP. Z O.O., a solar power generation company in Poland. It is the first NGK Group company to enter into such an agreement.

VPPA is an agreement whereby a user virtually purchases only the environmental value^*1 of electricity derived from renewable energy. Under the above agreement, NGK Ceramics Poland will purchase over a 10-year period (from April 2026 to March 2036) environmental value with additionality equivalent to 125 gigawatt hours (GWh) per year of solar power generation. It is estimated that the agreement will contribute to cutting approximately 940,000 tons^*2 of CO₂ emissions in real terms.

The NGK Group aims to realize net zero CO₂ emissions by 2050 through the NGK Group Environmental Vision formulated in April 2021. To achieve this goal, it has drawn up its Carbon Neutrality Strategic Roadmap. As strategies to realize the Vision, the NGK Group is aggressively reducing CO₂ emissions by switching to renewable energy for electricity used by Group companies in Japan and overseas, installing photovoltaic equipment (PV) at manufacturing sites, acquiring Renewable Energy Certificates (RECs), and introducing carbon-neutral city gas. NGK Ceramics Poland is installing a large-scale PV with a total capacity of 14 MW^*3. The NGK Group will contribute to the realization of carbon neutrality by continuing to expand the use of renewable energy and make new sources of renewable energy more available through the purchase of environmental value.

• *1Environmental value: The added value provided by helping to reduce CO₂ emissions, which are one of the causes of global warming, using renewable energy and energy conservation. Electric power generated from conventional energy sources such as fossil fuels have value as electricity, whereas electric power generated from renewable energy sources has not only value as electricity but environmental value as well.
• *2Based on CO₂ emissions coefficient at the time of writing
• *3 NGK to Introduce Solar Power Generation Equipment with a Total Capacity of 40 MW at Manufacturing Sites in Japan and Overseas by Fiscal 2025 (November 24, 2022)

World Kinect Corporation provided advisory services related to the conclusion of this agreement.

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