Business Overview
FY2023 Results and Mid- to Long-term Policy
In fiscal 2023, we worked on 1) creating new and construction peripheral businesses, 2) expanding renewable energy (RE) businesses, and 3) developing decarbonizationrelated technologies and services.
In creating new and construction peripheral businesses, in our initiatives to manufacture and sell bio-toilets we took the first step toward commercialization by selling monitoring units in the market prior to general sales. Additionally, two projects were selected from the "Plus One Challenge" internal idea submission system open to all employees, and we have started working toward their commercialization. In the renewable energy sector, we generated approximately 310 million yen in revenue from the operation of eight solar power plants. Furthermore, as a new floating solar power generation business, in March 2024 we completed our first on-site PPA project utilizing a regulating reservoir within our premises, and this has commenced power generation. In this way, we have steadily achieved results, primarily in the creation of new and construction peripheral businesses and the renewable energy sector.
For fiscal 2024, in the renewable energy generation business, we have been actively pursuing PPA projects in agricultural reservoirs which are seeing a rapid increase in demand, and have been continuing developing and verifying new floating and mooring systems suitable for deep dams, strong winds, and offshore locations, along with developing floats for heavy snow regions, with the aim of expanding appropriate locations. In the future, we aim to expand the scope of our floating solar power generation and target a power generation capacity of 40 MW by fiscal 2024 and 150 MW by fiscal 2030, in line with the 2050 Carbon Neutral Roadmap.
Additionally, we are aiming to start general sales of bio-toilets within fiscal 2024, and will continue to work on the development of new businesses contributing to a sustainable society.
Creation of New Businesses
Implementation of "Plus One Challenge" Internal Idea Submission System
As one of the specific measures to "take on challenges in growth areas"--one of the basic policies of the Mid-term Management Plan 2022-2024--last year we launched the internal idea submission system "Plus One Challenge" to proactively create business ideas for generating new revenue sources. This system aims to create a corporate culture that promotes "new challenges" for the growth of our company, and this fiscal year we are conducting the second round calls for ideas.
Among the new business ideas proposed last financial year, two passed the final selection, and starting this period, business creation initiatives are being pursued by the Business Creation Division. Through this system, we aim to create new businesses that contribute to solving social issues.
Development of Water Circulation Bio-toilet "SMilet"™
Our company has developed the Water Circulation Bio-toilet "SMilet"™, a flush toilet that does not require connection to water or sewage systems, or pumping by vacuum trucks. Even in situations where no water or sewage infrastructure is in place, such as during disasters, in nature parks, or at project sites, given a power source it is possible to create a "comfortable toilet environment, anytime, anywhere." Additionally, this is a water circulation bio-toilet comprising a flush toilet, wastewater treatment tank, water storage tank, and evaporation processing tank, which is easy to install and move, and it meets the standard specifications for "Comfortable Toilets" by the Ministry of Land, Infrastructure, Transport, and Tourism.
Through the deployment of SMilet, we hope to contribute to people's "smiles" at times of disasters, and on project sites where we are seeing increased diversity.
Renewable Energy Business
On-site PPA model
(floating solar power generation business on
regulating reservoir within factory premises)
We focus on floating solar power generation which has a low environmental impact, given that it does not require land preparation or deforestation, and small hydropower generation utilizing rivers and existing dams. In addition to the floating solar power plants that have already started operating under the electricity fixed-price purchase system (FIT), new floating solar power plants began generating last year with two off-site PPA projects and one on-site PPA project, all of which are currently running smoothly. Although there are no small-scale hydropower plants in operation yet, we have several projects for which preliminary design and flow measurement stages are progressing smoothly, and we are awaiting the start of the business.
Initiatives toward Vision 2030
By implementing the following initiatives and creating new revenue sources from peripheral businesses, we will achieve a transformation of our business portfolio.
- Accumulating assets (equivalent to 150 MW in terms of solar power) in the renewable energy generation business (floating solar power, small hydropower, biogas), thus achieving a multilayered profit structure.
- Expanding peripheral businesses that utilize our core competencies and management resources (sales of Sustain-Crete® products, bio-toilet sales business, etc.)
- Developing decarbonization-related technologies business (achieving early market entry through alliances)
- Securing human resources and building an ecosystem that will continuously generate innovations and implement new technologies in society