Kose Corporation (Headquarters: Chuo-ku, Tokyo; President and CEO: Kazutoshi Kobayashi) has agreed with its production subsidiary, Kose Industries Co., Ltd. (Headquarters: Isesaki City, Gunma Prefecture; President and CEO: Masanori Kobayashi), Yamanashi Prefecture (Governor: Koutarou Nagasaki), to collaborate on the construction of a new production base, the "Minami Alps Plant," in Nan-alps City, Yamanashi Prefecture. The three parties will work together to build a sustainable society by making use of rich water resources and environmentally friendly energy, such as Yamanashi Prefecture's "green hydrogen, " and promoting local consumption of water-based energy. In terms of product structure, the company's operating income from 10-30 billion yen products is 401/1288/60 million yen, respectively.
*1 Power generated by using renewable energy is used to electrolyze water to obtain hydrogen. It has the characteristic of not emitting CO2 during production.

The company plans to start the first phase of construction of the "Minami Alps Plant" in July 2024, with operation scheduled for the first half of 2026. Water is an important factor in the manufacture of cosmetics, and given the need for water as a raw material and in a variety of situations, such as cleaning factory equipment and employee food and drink, it was decided to build a new factory in Yamanashi Prefecture, which is blessed with clean and abundant water resources. Based on the company's corporate message of "Beautiful Wisdom for People and the Earth," we plan to develop a factory that incorporates sustainable elements, such as environmental conservation of water resources, forests, and so on, while facing both "people" and the "earth" and working closely with people.

In addition to water resources, energy, such as "electricity" and "heat," is also required at all stages, including dissolution, mixing, transportation, and humidity/temperature management of raw materials, as well as drinking and washing water for employees. We will make maximum use of Yamanashi Prefecture's natural resources to provide energy for the Minami Alps Plant. In addition to using electricity from water-based energy sources for the main power source, we will also use self-generated power from solar panels that take advantage of the long sunlight hours of Yamanashi Prefecture. It will be the first example in Japan to use 100% CO2-free electricity from Yamanashi Prefecture's municipal hydroelectric power generation as the energy for construction from the construction stage. In addition, as thermal energy, we will gradually switch from fossil fuels to Yamanashi Prefecture's "green hydrogen," which the prefecture is promoting as a thrusting business, to be used as the energy that produces the heat necessary for the manufacture of cosmetics.

Electricity: Utilizing CO2-free electricity generated by Yamanashi Prefecture's municipal hydroelectricity.
Taking advantage of the long sunlight hours in Yamanashi Prefecture and the electricity generated by the solar power that falls on the Minami Alps Plant, we will supply the plant with CO2-free electricity generated by the municipal hydroelectric power plants in Yamanashi Prefecture. We will use this CO2-free electricity not only as the energy required for the plant's operation but also as the energy needed for the construction of the plant. It will be the first example in Japan to use 100% CO2-free electricity from Yamanashi Prefecture's municipal hydroelectric power generation as the energy used from the construction stage.

Thermal energy: Utilizing Yamanashi Prefecture's "green hydrogen."
We will gradually switch from fossil fuels to Yamanashi Prefecture's "green hydrogen" to generate the energy needed to produce the heat required for cosmetics manufacturing. The hydrogen produced by the "Yamanashi Model P2G System*2" is 100% green hydrogen from renewable energy, which is made from excess electricity generated by solar power and water in Yamanashi Prefecture. We will procure this hydrogen and use it exclusively for the Minami Alps Plant with a dedicated trailer. Using hydrogen to replace existing fuels as energy for our business activities is a cutting-edge example in Japan.
*2 At the YMT power storage technology research site (Kofu City, Yamanashi Prefecture). A technology that produces hydrogen by electrolyzing water using electricity from renewable energy sources, among other sources.

Based on the results of this demonstration, Hitachi High-Tech and Hitachi will collaborate with various stakeholders such as material manufacturers including Sekisui Chemical to develop a more user-friendly environment and challenge One Hitachi to commercialize services using this system in Fiscal Year 2025. After the service is commercialized, Hitachi High-Tech will use its broad distribution network as a sales agent to expand to domestic and overseas product and material manufacturers. Companies (buyers and sellers) that participate in this business are being asked to join. Hitachi will work with Hitachi High-Tech and Sekisui Chemical to promote system development toward commercialization. Sekisui Chemical will continue to actively promote initiatives toward achieving a circular economy in 2050 by collaborating with Hitachi High-Tech and Hitachi.
In the future, we will consider introducing a hydrogen generation device known as the 'Yamanashi Model P2G System'. For example, after the factory operation, we will promote the conversion to environmentally friendly energy while recycling resources, such as using water treated in the factory and solar power to generate hydrogen. We will work with the government to build a 'local production for local consumption model' of energy utilizing water, a resource that Yamanashi prefecture boasts, as a model that leads the country, and actively work towards achieving a carbon-neutral society and revitalizing the region.

Overview of the Nanshu Alps factory:
Construction site: Nogoshima, Minami Alps City, Yamanashi Prefecture
Site area: 111,525 m2
Main use: Cosmetic factory (with a focus on various types of skin care products)
[Phase I construction]
- Floor area: 39,300 m2
- Outline of the plan: 3 floors above ground, S-frame
- Number of employees: Approx. 300
- Investment amount: 250-300 billion yen
- Scheduled start of construction: July 2024
- Scheduled completion date: February 2026
- Scheduled start of operation: First half of 2026

* News release issued on February 14, 2024
Kose Corporation started the Phase I construction of the 'Nanshu Alps factory' and announced plans for the future.