Contribution to decarbonized societ

Specific initiatives
Development of a system combining storage batteries, fuel cells anda water electrolysis system

Initiative for the realization of a decarbonized society,to which we contribute with our proprietary powerelectronics technologies
The Government of Japan has set the FY2030 greenhouse gas
emissions reduction target at 46% (from the FY2013 level) and
expressed its determination to keep working to achieve thelofty goal of 50%. The significance of the efforts in the energy
conversion sector is increasing, as it is responsible for more than40% of greenhouse gas emissions. It is particularly necessary
to increase the use of sunlight, wind power, biomass and otherrenewable sources of energy. Announced in April 2021, theGreen Growth Strategy set specific goals not only in the area ofnext-generation renewable energy but also in the storage battery,semiconductor and many other related sectors.
Since our foundation, we have nurtured power source
technologies to limit the loss involved in power storage orconsumption to a low level. Based on these technologies, wedevelop solar inverters for power storage systems and fuel cells
and other power supply devices. They play significant roles in
the creation of a carbon-free society. We also internally produce
high-voltage and large-current power semiconductors and highefficiency next-generation compound semiconductor modules.
They are core devices supporting the power supply devices
above. We are always able to deliver leading-edge technologies
to society.
At the Sansha Electric Manufacturing Group, we will continue
to provide new technologies and products further by applying
technologies that we have continued to cultivate since ourfoundation to contribute to realizing carbon neutrality by 2050.

The power consumed in Iki City, Nagasaki (Iki Island) isgenerated by diesel power generators on the island. Due tothe soaring cost of fuel (light oil), transportation and otherexpenses, it was urgently necessary to replace this method ofgenerating power. Against this background, in FY2021 the Iki
City Government began a demonstration experiment of a systemusing solar power and power from fuel cells with hydrogengenerated from sunlight. This project has been implemented atan onshore puffer fish farm.
In this demonstration experiment, we delivered products

Configuration of our products

Power consumption
stabilization system(equipment we delivered)

SwitchAC system

DC/AC converter for
loadTransformer(20 kW)
Load (onshorepuffer fish farm)

DC/DC converter forsolar cells
Solar panels
Capacity: 165 kW

DC/DC converter forstorage batteries

Oxygen tank
DC/DC converter forwater electrolysis

DC/DC converter forfuel cells

Energy solution provided by fully leveraging power electronics technologies

OxygenWater electrolyzer

Lithium batteries(20 kWh)

Fuel cells(16 kW)

Solar inverter (single function)including solar inverters, DC/DC converters for fuel cells, DC/DC
converters for storage batteries, and DC power supplies for thewater electrolysis system.
The solar power and the power generated by converting thepower from storage batteries and fuel cells is used to drive thewater circulation pump used in puffer fish farming. Oxygen thatis electrolytically generated by the water electrolysis system
is used to maintain the oxygen level in the aquarium, and theheat generated as a by-product is used to maintain the watertemperature.

Power System

HydrogenHydrogen tank

Heat

GenerateH2
Inverter for storage battery

Water electrolysis
hydrogengeneration

Inverter for fuel cell

Combined systems(including energy management system)

Core technologies
Systeminterconnection

Smart inverter

Bidirectional power
conversion

Store

Power semiconductors supporting
power supply devices
Battery charge
and discharge

Combined power modules

We are working to develop a solar inverter that use hydrogenand build a fuel cell system leveraging the technologies for solar
inverters that we have cultivated. This fuel cell inverter has asilicon carbide (SiC) MOSFET power module that we developed
and contributes to improving energy efficiency in high-current,high-voltage applications.

Comparison of power loss of semiconductors
400Power loss due tosemiconductors

HydrogenContributing to saving energy with SiC
MOSFET modules

Areas related tohydrogen/fuel cells

300

IGBT

Independently developed SiC MOSFET module

Loss reduced

200
100051525Inverter output power supply (A)35451200V150A Vcc 500V fsw 7kHz

Techno Block series
The Techno Block series of semiconductor modules
or packages with compact dimensions and excellent
heat dissipation feature our proprietary method ofsoldering both sides and the use of transfer molding.

Use smartlyConsuming
Virtual power plant* construction demonstration project

System interconnection

Silicon mesa structure

SiC

Transfer-molded structure

Packages with high voltage
resistance and high reliability

We are involved in a virtual power plant construction
demonstration project with the goal of achieving unprecedented
new energy management to build a foundation for energy
infrastructure that will contribute to efficient energy use bysociety as a whole.
We are considering ideas which will lead to solutions to various

issues in the popularization, expansion and commercializationof renewable energy. Expected achievements have been seenin the demonstration experiments using household storage
batteries, industrial storage batteries and electric vehicles asenergy sources. We will continue working to optimize energy
management for future commercialization.

*A virtual power plant is a system in which small power generation and storage facilities in many households, office and commercial buildings, factories and others are operated
together like a single power plant, instead of constructing a large power plant, by integrating and remotely controlling them using IoT and other information technologies.

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Contribution to decarbonized societ

Initiatives for building a decarbonized society
advanced together with our partner companies
On November 8, 2022, we signed capital and business alliances with Mitsubishi Heavy Industries, Ltd. and Nitto Kogyo Corporation.
We collaborate with the companies to implement decarbonization initiatives, with the goal of enhancing our corporate value.

Comments from Mitsubishi Heavy Industries, Ltd.
At Mitsubishi Heavy Industries, Ltd. (“MHI”), we set our growthstrategy as “Energy Transition” on the energy supply side and“Smart Infrastructure” on the demand side. Our aim is to strongly
promote energy conservation, automation, and decarbonization
initiatives in these areas contributing to the establishment of acarbon-neutral society.
We have been actively looking for an alliance partner, believingthat collaboration with a partner will accelerate such initiativewith an eye to the medium-term growth of the business, rather
than pushing forward with it on our own. Sansha Electric
Manufacturing has world-leading power supply and power
semiconductor technologies and has proactively contributed
to the establishment of a decarbonized society through highly
efficient electric power transformation. This is an importantelement in the medium-term growth strategy that we haveestablished at MHI, and we believe that Sansha Electric
Manufacturing is an essential partner in our efforts to execute
this strategy.
We are certain that the power electronics technologies

provided by Sansha Electric Manufacturing will make a
substantial contribution to solving social issues as we movetoward decarbonization. By leveraging each other’s strengths,
we can achieve a sustainable, carbon-neutral society globallyproviding new solutions. With Sansha Electric Manufacturing ourmentor in the realm of power electronics, we hope for further
strategic collaboration.

Shinichiro Gomi

General Manager
Business Development Department
Growth Strategy Office
Mitsubishi Heavy Industries, Ltd.

Helping solve regional issues withwireless technologies
Chino City, Nagano, where Suwa Sansha Electric Co., Ltd.
is located, boasts the rich natural environment at the base ofYatsugatake. This has created social issues unique to Chino City,
including the need to watch over mountain climbers and schoolcommuters, the prevention of damage caused by harmful fauna,disaster control, and the introduction of agricultural IoT. To help
solve these issues using unique technologies, Suwa Sansha
Electric participated in the industry-academia-government
collaborative project for the creation of the SUWARIKA Brand
during the three years from FY2018 to FY2020.
Among these issues, in mountainous areas, flood damage
is becoming more frequent every year with the rising risk of theflooding of small rivers. In Japan, a flood-prone country, thereis strong demand for the measurement of river and lake waterlevels. Water gauges have already been installed in governmentmanaged rivers and the data from them is transmitted wirelessly.
However, these gauges have yet to be installed in small rivers.
A compact, lightweight, high-precision, low-cost water
gauge was developed as a SUWARIKA Brand product. In thisproject, Suwa Sansha Electric developed a wireless transmission
board for the IoT device. The transmission board is equippedwith a GPS. It is capable of transmitting location informationand information from the sensors connected to it. It is used toaccurately predict river water levels and to monitor water levels,
such as the detection of abnormal phenomenon caused bymudslides. At present, the water gauges are operating in theChino and Suwa areas.
A demonstration experiment is under way for using thesetechnologies for weather observation and crime prevention in thefuture.

Yatsugatake

GPS

Comments from Nitto Kogyo Corporation
At Nitto Kogyo, we have
set the expansion of ourbusiness in the energy
management market
as an initiative to bepursued in anticipationof decarbonizationand the changes in theenvironment surrounding
energy, to achieve
Safa Link-One
continued growth under
our long-term vision:
Trust, Technology, and Contribution — A company that createsvalues and connects electrics and information to tomorrow. We
were looking for an alliance partner believing that, to achieve theabove, we need to have a partner that shares our orientation,
instead of working on our own. At Nitto Kogyo, we believe thatthe power electronics technologies possessed by Sansha
Electric Manufacturing are essential for executing the above
initiative. We are certain that the capital and business alliance will
enable the two companies, both of which are oriented toward
decarbonization, to leverage each other’s strengths.
We believe that the power electronics technologies
possessed by Sansha Electric Manufacturing are playing avery important role in the realization of a decarbonized society.
The Safa Link-ONE- industrial solar self-consumption storage

39

battery system that Nitto Kogyo has productized is the first
product that leverages the strengths of the two companies.
It is highly acclaimed by many people. We expect that thetwo companies will continue to create new products and newsolutions leveraging their technologies and strengths and thereby
contribute to a decarbonized society.
We hope that the two companies can open up the way toa new era as strategic partners, aiming to achieve sustainablegrowth and the medium- to long-term improvement of theircorporate value.

Receiving station

Cloud

Tablet/smartphone/PC

Water level sensor

Mr. Takashi Mizukoshi

EMS Business Department,
Business Planning Department,
Nitto Kogyo Corporation

What is the industry-academiagovernment collaborative
project for the creation of theSUWARIKA Brand?

The project was created by the government of Chino City, Nagano to address the population
decline, the low birthrate and the aging of the population. With Suwa University of Science
playing a central role, the goal of this initiative is to solve various administrative and regional
issues by integrating advanced manufacturing technologies with the Low Power Wide Area
(LPWA) wireless transmission technology for leading-edge IoT devices.

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