IIJ Launches Service Using Non-Fossil Certificates (NFCs) to Supply Data Center Customers with Electric Power Essentially from Renewable Energy

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TOKYO - October 12, 2023 - Internet Initiative Japan Inc. (TSE Prime: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced the start of a new service at its Shiroi Data Center Campus ("Shiroi DCC"; Shiroi, Chiba Prefecture) that will provide data center users with electric power essentially from renewable energy, by making use of FIT Non-Fossil Certificates (NFCs).(*1)

The service will offer customers a minimum-effort way of offsetting CO2 emissions arising from data center use. It will further be useful for medium-term plan formulation and regular reporting on the shift to non-fossil energy, required in the revised Act on Rationalizing Energy Use, as well as for RE100(*2) and similar reporting.

Starting in July 2024, IIJ plans to implement a functionality in this service that will enable trading and payment of environmental value with digital currency, making use of the DCJPY (tentative name) network (Two-tiered Digital Currency Platform) operated by DeCurret DCP Inc.(*3)

IIJ operates the Shiroi DCC as facility infrastructure for its own cloud and network services, and to provide colocation services for hosting the IT equipment of its customers. Reducing greenhouse gas emissions is an urgent matter for the whole world; and data centers, which use large amounts of electricity, face the need to shift the electric power they use to renewable energy sources. IIJ in addressing this challenge has defined a carbon neutral data center reference model, and is promoting various measures to raise the rate of renewable energy use and improve energy efficiency at its data centers, such as by installing on-site solar power generation facilities and making use of lithium-ion storage batteries.

In line with these efforts, IIJ in April registered as an NFC trading member of the Japan Electric Power Exchange (JEPX), gaining the ability to purchase and act as a broker for FIT non-fossil certificates, and has now begun making use of FIT NFCs to supply electric power essentially from renewable energy to those customers desiring it.

• (*1)Instruments certifying the environmental value of non-fossil electricity that has been procured from power sources covered by Japan's feed-in tariff (FIT) scheme.
• (*2) RE100 (Renewable Energy 100%): A global initiative encouraging corporations to procure the energy consumed in their business activities from 100% renewable energy, as a climate policy measure.
• (*3)Press release issued October 12, 2023, "Jointly Promoting the Digital Assets of Environmental Value and Digital Currency Settlement, with the Aim of Launching Service in July 2024": https://www.iij.ad.jp/en/news/pressrelease/2023/1012-2.html

Features and advantages of the service

Offers an easy way to use environmental value

The rights to the non-fossil certificates provided in this service belong to the data center customers, who are able to use the environmental value in their own companies. Since IIJ acts as an agent in procurement of the environmental value, customers can with minimum effort offset the CO2 emissions arising from their data center use.

Makes possible low-cost and flexible shifting to renewable energy

Besides enabling use of FIT non-fossil certificates traded at low cost, the service lets customers bid on any amount of electricity within the range of actual use by the data center, for flexibly shifting to renewable energy use commensurate with the customer's energy needs.

Future plans

Starting in July 2024, IIJ plans to implement functionality in this service that will convert environmental value to digital tokens and enable trading and payment with digital currency, making use of the DCJPY (tentative name) network (Two-tiered Digital Currency Platform) operated by DeCurret DCP Inc.
Advantages of payment with digital currency include immediate settlement, simplification of transactions, and the ability to exchange intangible assets for value. Along with easing the administrative burden from frequent billing and payment as transactions grow, the digital currency can be used in and outside the data center, such as for purchasing other services with surplus environmental value.

IIJ is committed to further promoting carbon neutrality, not only in its data centers but in society as a whole.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainty. These statements may differ materially from actual future events or results.

For inquiries, contact

IIJ Corporate Communications

• +81-3-5205-6310
• +81-3-5205-6377
• press@iij.ad.jp

• (*)All company, product, and service names used in this press release are the trademarks or registered trademarks of their respective owners.