Overcoming climate changeRE100: Aiming for 100% of electric power used to come from renewable energy

Joining RE100 and 100% of electric power used to come from renewable energy that prioritizes “additionality”

In November 2020, Kirin Holdings joined “RE100,” an international environmental initiative consisting of companies aiming to use renewable energy for 100% of their electric power. At the same time, we announced that we would aim to increase the proportion of renewable energy in electric power used to 100% by 2040. We are actively promoting specific initiatives such as moving to 100% renewable energy for all purchased electric power at two Kirin Brewery plants, our utmost prioritization of “additionality,” and the use of power generated from large-scale solar power at all breweries in Japan.

100% renewable energy for all electric power purchased at Kirin Brewery's Sendai and Nagoya plants, and all Château Mercian wineries

Since April 2022, 100% of the electric power purchased at Kirin Brewery Sendai Plant has been generated from renewable energy. In August 2021, Kirin Brewery's Nagoya Plant became our first brewery in Japan to use 100% renewable energy. By changing all electric power used at two plants in Japan to renewable energy, we expect to reduce GHG emissions by 11,900 tonnes per year.
Since January 2022, all “Château Mercian” wineries producing Japan Wine (Château Mercian Katsunuma Winery, Château Mercian Mariko Winery, and Château Mercian Kikyogahara Winery) have achieved 100% renewable energy by combining green power certificates with purchased electricity. With these efforts, we expect to be able to reduce annual GHG emissions by approximately 300 tonnes.

  • Katsunuma Winery, Mariko Winery, Kikyogahara Winery

Use of large-scale solar power generation at all breweries in Japan

At the Kirin Group, we are prioritizing “additionality,” which refers to creating new sources of renewable energy in the world. Following the introduction of large-scale solar power generation facilities at the Yokohama Brewery in 2016, Kirin Brewery introduced these facilities at the Sendai, Nagoya, Shiga, and Kobe Breweries in 2021, and at the Hokkaido Chitose, Toride, Okayama, and Fukuoka Breweries in March 2022. The introduction of these facilities at all nine breweries (eight breweries, excluding the Yokohama Brewery, use the PPA model*) will increase the proportion of renewable energy in electric power used by Kirin Brewery as a whole from approximately 18% to approximately 34%.

* PPA stands for the “Power Purchase Agreement” model and refers to an agreement between a business that sells electricity to users (PPA provider) and the users of electric power. At Kirin Brewery, MCKB Energy Service Co., Ltd., a subsidiary of Mitsubishi Corporation Energy Solutions Ltd., acts as a PPA provider, installing megawatt-class solar power generation facilities on the roofs of breweries, while Kirin Brewery purchases and uses the power generated.

  • Hokkaido Chitose Brewery, Toride Brewery, Okayama Brewery, Fukuoka Brewery, Sendai Brewery, Kobe Brewery, Shiga Brewery, Nagoya Brewery

Use of solar power in Australia

In Australia, we installed solar power generation facilities at Castlemaine Perkins Brewery in 2019 and at Little Creatures Geelong in Victoria in 2020. In 2021, Lion focused on developing a brewery network that will support measures to respond to climate change. We continued to invest in energy efficient equipment and review options for expanding the PPA model for renewable energy to other areas outside of our PPA in New South Wales, Australia.
Lion is also helping small-scale energy users procure renewable electricity at low prices. New South Wales' largest brewery, Tooheys Brewery, has signed a PPA agreement with a renewable energy distributor in partnership with the Australian Hotels Association (AHA), which consumes a low amount of energy. By jointly signing a large power contract, the AHA is able to introduce renewable energy at a lower cost, successfully reducing the cost of power for hotels from 11.5c/kWh to 6.9c/kWh. The agreement will reduce Lion's GHG emissions by approximately 20%.

  • Lion Little Creatures Geelong

Other solar power generation

Production breweries and plants, including those of Kirin Brewery and Kirin Beverage, have installed solar-power generation equipment in their plant tour facilities and other locations. KIRIN GROUP LOGISTICS, Kyowa Hakko Bio, and Shinshu Beverage have leased parts of their premises and building roofs to companies that build large-scale solar power generation facilities, contributing both to effective use of company assets and to the dissemination of natural energy.

  • Yokohama Brewery

  • Kyowa Hakko Bio

Wastewater biogas

At breweries, we use CO2-free biogas generated from anaerobic treatment facilities to purify wastewater at gas boilers, cogeneration systems, and other equipment.
Breweries in Australia and New Zealand are also working toward the stable use of biogas from wastewater treatment. At Tooheys Brewery in Australia, the Utility Team focused on improving biomass population loss in anaerobic wastewater treatment plant bioreactors and discrepancies in the quality and quantity of biogas production. At the Castlemaine Perkins Brewery anaerobic treatment plant, we use healthy microorganism collected from the plant at Tooheys Brewery to replenish the bioreactor, optimized pH levels, and stabilized treatment volumes, resulting in an improvement of more than 30% in biogas generation per unit of effluent discharge volume in 2022 compared with the previous year. We have also added a cogeneration plant and are working to make effective use of biogas.

Hydro-electric power generation

Since April 2017, Kirin Brewery’s Toride Plant and Kirin Beverage’s Shonan Plant started using GHG-free hydro-electric power in a portion of purchased power. The plants are taking advantage of Aqua Premium, the Japan-first option offered by TEPCO Energy Partner to supply only hydro-electric power. By using hydro-electric power, which does not emit GHG at the time of power generation, they will contribute to global warming countermeasures. This is the first example of the use of this option by any plant in Japan, not just in the food and beverages industry.
In January 2020, Kyowa Kirin’s Takasaki Plant began using the same system, followed by the Fuji Research Park and CMC Research Center in January 2022. As a result, of the approximately 72.4 million kWh annual electric power consumption of the Kyowa Kirin Group, we expect that approximately 45.4 million kWh will be converted to hydro-electric power, reducing the Kyowa Kirin Group’s GHG emissions by approximately 39%.
This is the first case of using electric power generated from hydro-electric power in the Japanese pharmaceutical manufacturing industry.

  • Kyowa Kirin Takasaki Plant Percentage of purchased electric power generated from hydro-electric power (2021) 79%

  • Kirin Beverage Shonan Plant Percentage of purchased electric power generated from hydro-electric power (2021) 37%

Wind power

Through a consortium represented by Mitsubishi Corporation Energy Solutions, Ltd., Venti Japan Inc., C-Tech Corporation, and Mitsubishi Corporation (the “Consortium”), we have been selected as a power generation business operator for projects off the coast of Noshiro City, Mitane Town, and Oga City in Akita Prefecture, off the coast of Yurihonjo City in Akita Prefecture, and off the coast of Choshi City in Chiba Prefecture. Kirin Holdings is a partner of the Consortium. These projects are Japan's first fixed-bottom offshore wind power generation projects in general sea areas. They will be among the largest sources of power in Japan, and will make a significant contribution to the Japanese government's commitment to achieve carbon neutrality by 2050. The maximum power output of the three projects will be approximately 1.69 million kW, which is sufficient to meet the electric power demand of approximately 1.21 million households.
In the future, through the activities of the Consortium, we will create a positive impact toward the decarbonization of society through the creation of new renewable energy, and achieve cooperation and symbiosis with local communities.
The Kirin Group has been sponsoring the Yokohama City Wind Power Generation Project, which Yokohama City promotes using the Green Power Certification System since 2007 as part of our support for the promotion of the use of natural energy as a Hama Wing Supporter. So far, the power generated by this project has been used by SPRING VALLEY BREWERY TOKYO, the Earth Hour hosted by WWF, etc.

  • Yokohama City Wind Power Plant (Hama Wing)

Renewable energy certificates

Since 2021, Kyowa Hakko Bio has introduced “Renewable Energy Certificates (I-REC)” at Thai Kyowa Biotechnologies in Thailand. This marks the first adoption of these certificates in the pharmaceutical and food industries in Thailand, and we expect it will enable us to reduce annual GHG emissions by 10,200 tonnes, thanks to the use of renewable energy sources for some of the electricity used in the plant. In anticipation of growing global demand for Human Milk Oligosaccharide (HMO) for powdered milk, we are building a new production facility at the Rayong Plant, which we plan to bring online in the summer of 2022. By introducing this renewable energy certificate, we are aiming to achieve business growth while reducing the environmental impact. In 2022, Shanghai Kyowa Amino Acid began introducing renewable energy certificates.
At Kyowa Kirin's Tokyo Research Park, as a “Designated Global Warming Prevention Facility” based on the Tokyo Metropolitan Ordinance on Environmental Preservation, we achieved significant additional reductions in emissions (equivalent to 3,736 tonnes of CO2) by exceeding the mandatory reductions for the first and second plan periods, and provided these reductions as credits under the “Tokyo 2020 Carbon Offset Programme,” as part of our support for the achievement of “Tokyo zero carbon four days in 2020.”

  • Thai Kyowa Biotechnologies

Carbon neutrality in Australia and New Zealand

In May 2020, Lion became Australia’s first large-scale carbon neutral certified brewer.
In order to obtain Climate Active*1 certification in Australia, Lion must disclose carbon credits used to offset total emissions for the year in its annual report, and Lion has been complying with this requirement. This certification standard is a new standard for carbon neutral certification in Australia.
In New Zealand, Lion also obtained Toitū*2 carbon zero certification in 2021.

*1 A third-party certification body established by the government of Australia
*2 A third-party certification body established by the government of New Zealand

  • Climate Active Carbon Neutral ORGANISATION, TOITU NET CARBON ZERO ISO 14064-1 ORGANISATION

*The above information is reprinted from the Kirin Group Environmental Report 2022 and is current as of June 30, 2022.