Mitsubishi Corporation signed a 10-year long-term corporate power purchase agreement (PPAs) with e-commerce giant Amazon. Mitsubishi will supply power to data centers owned and operated by Amazon’s subsidiary, Amazon Web Services.

The PPA is Amazon’s first agreement for green energy procurement in Japan. As per the agreement, West Holdings Corporation is expected to develop and operate around 450 solar power stations with 22 MW capacity for Amazon and supply power to its data centers. The commercial operation of solar power projects is expected to begin in April 2023.

Mitsubishi Corporation’s subsidiary Mitsubishi Corporation Energy Solution will manage the construction of solar power facilities and provide technical support. Meanwhile, its other subsidiary ElectroRoute will forecast the solar power facilities’ outputs and hedge power generation imbalances.

The company said it aims to double its 2019 renewable energy output by 2030 and eliminate fossil fuels and carbon dioxide emissions from its power-generation portfolio by 2050. Similarly, Amazon has also set a target to source only renewable energy by 2025.

The PPA is Mitsubishi Corporation’s second renewable energy agreement with Amazon. Earlier this year, it has signed an agreement through which its subsidiary Eneco is expected to provide power generated by offshore wind projects to Amazon. The wind farm will be operated by The CrossWind consortium, a joint venture between Shell and Eneco. Starting 2024, Amazon will offtake 250 MW from Shell and 130 MW from Eneco.

In July 2021, French oil and gas company TotalEnergies and Amazon announced a strategic collaboration through which TotalEnergies would supply 100% renewable energy for Amazon’s operations. The companies have signed a PPA based on which TotalEnergies would supply 474 MW of renewable energy for Amazon’s operations in the United States and Europe.

Earlier this year, Amazon issued a $1 billion sustainability bond to fund ongoing and new projects in five key green spheres. The company is expected to finance green and social projects through the green, social, and sustainability bonds.

Amazon had also announced its plans to set up 62 MW of ground-mounted solar projects in Singapore. The projects are expected to be completed in 2022 and generate 80,000 MWh of power annually – enough to power over 10,000 households in Singapore.