Japan’s Owner of Muji Stores Looks to Build Clean Power Plants

(Bloomberg) -- Ryohin Keikaku Co., the Japanese firm that owns minimalist household goods and furniture brand Muji, will look to build clean power plants in an effort to meet its emissions targets. 

The company will consider developing its own solar power as a way to secure clean electricity, according to a statement on Friday. Ryohin Keikaku’s goal is for all of its stores to run entirely on renewable energy by 2030.

The company said emissions related to electricity use have risen due to business expansion and new store openings, and that extra measures are needed. The firm estimates it will require around 60 megawatts of extra power capacity by 2030. 

Consumer brands globally are under pressure from customers and investors to clean up their supply chains. Firms like Ikea have also flagged their intention to switch to 100% renewable energy to power their operations. 

As a first step, Ryohin Keikaku is planning to develop about 12 MW of power generation capacity, which will cost around 3.6 billion yen ($23 million), according to the statement. It also intends to sell clean electricity generated by its facilities to the nation’s spot power market. 

Ryohin Keikaku signed a memorandum of understanding with Japan’s biggest power producer Jera Co. and its subsidiary Jera Cross Co., to jointly develop and operate the plants, according to the statement. The companies will consider setting up a separate firm for the business. 

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