Japan Semiconductor, the chip manufacturing subsidiary of Japanese conglomerate Toshiba, has signed a virtual Power Purchase Agreement with Kunishitaike Mega Float (KMF) to acquire environmental attribute certificates from a floating solar project in Kagawa Prefecture, Japan.

Under the terms of the agreement, KMF parent company OTS will supply Japan Semiconductor with environmental value derived from the 7.8MW Kunishitaike floating solar plant located in Miki Town, Kagawa Prefecture. The facility is one of the largest floating solar plants in the world, and reached commercial operations in December of last year.

According to Japan Semiconductor, the vPPA will support its goal to reduce its annual greenhouse gas emissions by about 4,173 tons per year.

The contract was implemented through "RE Bridge,” an auction platform provided by energy aggregator Digital Grid that connects buyers and sellers of renewable power.

The signing of the vPPA is part of a broader effort by Toshiba to decarbonize its manufacturing sites by 100 percent by 2030. Japan Semiconductor was established in 1973 and is Toshiba's core manufacturing arm for its semiconductor products.

Semiconductor manufacturers are increasingly signing PPAs to decarbonize their operations. Last year, several firms announced long-term agreements, including Infineon, which inked two PPAs with PNE AG and Statkraft in Germany, and STMicroelectronics, which signed a 43MW PPA in France with TSE.