In April 2026, Daiwa Can Company, in partnership with Kyuden Mirai Energy and Tokyo Electric Power Company Energy Partner, launched an innovative offsite corporate Power Purchase Agreement (PPA) powered by geothermal energy. This initiative is more than just a contract—it represents a paradigm shift in how industries can secure stable, low-carbon electricity while mitigating operational risks.
The Rising Importance of Corporate PPAs
Corporate PPAs have rapidly emerged as a preferred mechanism for companies seeking to reduce their carbon footprint. These agreements allow businesses to purchase electricity directly from renewable energy producers at fixed prices over long periods. The appeal is clear: predictable energy costs, reduced exposure to market volatility, and measurable progress toward sustainability targets.
However, not all renewable sources are created equal. Solar and wind, while cost-effective and widely deployed, depend heavily on weather conditions and time of day. For manufacturing industries operating 24/7, this intermittency creates a mismatch between energy supply and demand.
This is where geothermal energy enters the equation.
Why Geothermal? The Baseload Advantage
Geothermal energy stands apart from other renewables due to its ability to provide continuous, stable power—often referred to as “baseload” energy. Unlike solar panels that stop generating at night or wind turbines that depend on wind speeds, geothermal plants tap into the Earth’s internal heat, delivering electricity around the clock, 365 days a year.
For Daiwa Can Company, this reliability was a decisive factor. Their Tokyo factory, located in Kanagawa Prefecture, operates under demanding production schedules that require uninterrupted power. By integrating geothermal energy into their energy mix, the company ensures that both peak daytime operations and reduced nighttime loads are consistently supported.
This move marks the first time geothermal power has been introduced into their renewable energy portfolio, which previously included solar, biomass, and hydropower.
The Offsite Physical PPA Model Explained
The agreement implemented by the three companies is an offsite physical corporate PPA, a model that is gaining traction globally. Under this arrangement:
- Kyuden Mirai Energy generates electricity from its geothermal power plants located in Oita and Kagoshima Prefectures.
- Tokyo Electric Power Company Energy Partner acts as the retail electricity provider, transmitting the power through the national grid.
- Daiwa Can Company receives the electricity at its Tokyo factory, along with the associated environmental benefits.
This structure allows companies to access renewable energy without the need to install generation assets on-site. It is particularly advantageous for facilities with physical or regulatory constraints that limit on-site renewable installations.
Overcoming On-Site Limitations
One of the key drivers behind this initiative was the limitation faced by Daiwa Can Company in expanding on-site solar installations. Structural constraints, including roof design and seismic requirements, made it difficult to scale solar capacity at the Tokyo factory.
The offsite PPA model provided a solution by enabling the company to source renewable energy from remote locations. This not only bypassed the physical limitations of the facility but also allowed for a more diversified energy portfolio.
Diversification is critical in energy procurement. By incorporating geothermal energy, Daiwa Can Company reduces its reliance on any single energy source, thereby enhancing resilience against supply disruptions and price fluctuations.
Quantifying the Impact
The environmental benefits of this initiative are substantial. The geothermal-powered PPA is expected to reduce carbon dioxide emissions by approximately 6,100 tons annually. This reduction contributes significantly to the company’s broader decarbonization goals and aligns with global efforts to combat climate change.
Beyond emissions reduction, the initiative also enhances operational stability. Manufacturing processes are highly sensitive to power interruptions, and the consistent output of geothermal energy ensures smooth and reliable operations.
A First for the Industry
This project represents a pioneering step for the can manufacturing industry. While renewable energy adoption is becoming more common, the use of geothermal energy in a corporate PPA is still relatively rare.
For Tokyo Electric Power Company Energy Partner, this marks its first involvement in an offsite geothermal PPA. The success of this initiative could pave the way for similar projects across various industries, encouraging more companies to explore geothermal energy as a viable option.
The Strategic Role of Kyuden Mirai Energy
Kyuden Mirai Energy plays a crucial role in this ecosystem as the geothermal power producer. With a diverse portfolio that includes solar, wind, biomass, hydropower, and geothermal energy, the company is uniquely positioned to meet the evolving energy needs of its clients.
Its geothermal assets, with a combined capacity of nearly 200 megawatts, provide a reliable foundation for long-term energy supply agreements. By leveraging this capability, Kyuden Mirai Energy is helping to expand the reach of geothermal power beyond traditional utility markets.
The Broader Implications for Global Energy Markets
The implications of this project extend far beyond Japan. As countries around the world strive to meet ambitious climate targets, the demand for reliable renewable energy is expected to grow exponentially.
Geothermal energy, often overlooked in favor of more visible technologies like solar and wind, has the potential to play a much larger role. Its ability to provide baseload power makes it an ideal complement to intermittent renewables, enabling a more balanced and resilient energy system.
Corporate PPAs will be a key driver of this transition. By creating direct links between energy producers and consumers, these agreements can accelerate the deployment of renewable energy projects and reduce reliance on fossil fuels.
Lessons for Emerging Markets
For regions like Africa, and particularly Kenya, this model offers valuable insights. Kenya is already a global leader in geothermal energy, with significant capacity installed in the Olkaria geothermal fields.
The adoption of corporate PPAs powered by geothermal energy could unlock new opportunities for industrial growth and investment. By providing stable and affordable electricity, such agreements can attract energy-intensive industries and support economic development.
Moreover, the integration of geothermal energy into corporate energy strategies can enhance energy security and reduce dependence on imported fuels.
Challenges and Considerations
Despite its advantages, the widespread adoption of geothermal PPAs is not without challenges. These include:
- High upfront costs associated with geothermal exploration and development
- Geological risks and uncertainties
- Regulatory and policy barriers in some regions
- Limited awareness and understanding of geothermal potential
Addressing these challenges will require coordinated efforts from governments, industry stakeholders, and financial institutions. Policy support, risk mitigation mechanisms, and capacity building will be essential to unlock the full potential of geothermal energy.
The Future of Corporate Energy Procurement
The collaboration between Daiwa Can Company, Kyuden Mirai Energy, and Tokyo Electric Power Company Energy Partner is a glimpse into the future of energy procurement. It demonstrates that with the right partnerships and innovative approaches, companies can achieve both sustainability and operational excellence.
As the energy landscape continues to evolve, the role of geothermal energy is likely to expand. Advances in technology, such as enhanced geothermal systems and superhot geothermal drilling, could further increase its accessibility and efficiency.
For forward-thinking companies, the message is clear: the transition to clean energy is not just about adopting renewables—it is about choosing the right mix of technologies to ensure reliability, resilience, and long-term value.
Conclusion: A Quiet Revolution Beneath Our Feet
Geothermal energy may not capture headlines in the same way as solar or wind, but its impact is profound. By harnessing the Earth’s natural heat, it offers a sustainable and dependable source of power that can meet the demands of modern industry.
The offsite geothermal PPA in Japan is more than a milestone—it is a blueprint for the future. It shows that the path to decarbonization does not have to come at the expense of reliability or economic viability.
As more companies recognize the value of baseload renewable energy, geothermal power is poised to move from the margins to the mainstream. And in doing so, it could become one of the most important pillars of the global energy transition.
For innovators, policymakers, and industry leaders, the challenge now is to scale this model, adapt it to different contexts, and unlock the immense potential that lies beneath our feet.
Source: Daiwa Can
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