Section

01

GrowthStrategies

19

The Takuma Groupʼs
Values and Vision

21

Value Creation Process

23

Key Issues (Materiality)

25

13th Medium-Term
Management Plan

27

Business Strategies

31

Our Achievements

39

Feature: Machida City
Bio-energy Center

41
TAKUMA CSR Report 2022

20

Section 01

Growth Strategies

The Takuma Groupʼs management strategy
Founding spirit

The Takuma Groupʼs
Values and Vision
The Takuma Groupʼs system of principles
The foundation of the Takuma Group is founder
Tsunekichi Takumaʼs directive to“Serve society through boiler manufacturing”‒in other words, to contribute to customers and society
through the companyʼs products and services.
We have formulated our Company Motto andManagement Principles based on that philosophy,
and our management strategies rest on those principles.

Serve society throughboiler manufacturing

Company
Motto
Management
Principles

Vision 2030 (Long-Term Vision) (FY2021 to FY2030)
Future vision

Aim to maintain our role of being an indispensable presence in society as aleading company in the ﬁeld of renewable energy utilization and environmental
protection by realizing sustained growth alongside our customers and society
through implementation of ESG management.
By formulating Vision 2030, our long-term vision looking towards 2030, we are seeking to realize sustained
growth alongside customers and society.
Creative R&D

Long-Term Vision

01

02

Sharing of needs
and issues

Innovation

Medium-Term
Management Plan
Communication withcustomers and society

Contributions tocustomers and society
Sustained growth of
the Takuma Group

Implementing
ESG
management
03
Resolution ofchallenges

Provision oftechnologies and services

Business portfolio

Founding spirit (from 1938)

To realize our vision, we will grow while contributing to customers and society through the business described
below.

Serve society through boiler manufacturing
This philosophy served as the Company Motto of Takuma, then Takuma

EPC businesses

Boiler Manufacturing Co., Ltd., which was founded by Tsunekichi Takuma,

Domestic Environment andEnergy Business
Municipal Solid Waste
Treatment Plant Business
Energy Plant Business
Water Treatment Plant Businessone of the 10 great inventors of Japan during the Meiji and Taisho periods(1868-1926). The central tenet is to contribute to society through corporate
activities such as the manufacture, sale, and service of boilers.
Our Founder Tsunekichi Takuma

Company Motto (from 1992)

Value Technology, Value People, Value the Earth
The previous Company Motto, “Serve society through boiler manufacturing”, was replaced with the above in
1992, reﬂecting recognition that the company was operating a multifaceted business as a manufacturer of not
only boilers, but also environmental sanitation systems like waste treatment facilities and water treatment
equipment. It captures Takumaʼs stance of leveraging the personality and ability of each employee to reﬁnetechnologies that consistently lead the industry and then using them to safeguard the Earthʼs environment.

Domestic Environment andEnergy Business
Municipal Solid Waste
Treatment Plant Business
Energy Plant Business
Water Treatment Plant Business
Power Retail Business

P32
P33
P34

P32
P33
P34
P35

Overseas businesses
Overseas Environment andEnergy Business

Equipment and Systems business P38

Package Boiler businesses P37

P36

New businesses

Financial target
Target under theprevious corporate vision

Vision 2030 target

FY2020:Ordinary proﬁt of

FY2030: Ordinary proﬁt

JPY 10 billion

JPY 20 billion

20

Bar graph: Illustration of sales trendLine graph: Ordinary proﬁt (unit: billions of yen)Management Principles (from 2006)

Takuma will strive for social contribution, corporate value enhancement, long-term
corporate development and the satisfaction of all stakeholders by providing goods
and services that are needed and recognized as valuable in society.

Recurring revenue model businesses

11.6

12.3
11.0

10.7

10.3

10.6

9.6

The Management Principles were crafted by organizing and articulating the value system embodied in theoriginal Company Motto of “Serve society through boiler manufacturing”.
Our goal is to contribute to customers and society as a whole through the goods and services we create.

21

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

TAKUMA CSR Report 2022

22

Section 01

Growth Strategies

The Takuma Groupʼs management strategy

Value Creation
Process

We are working to create new value by strengthening
businesses that tap the Groupʼs strengths in light of
medium- to long-term trends and social issues.

External environment
GlobalDomestic(Japan)Risks and opportunities

Rising demand for energy and waste
treatment as the planetʼs populationand economies grow
Increasingly serious problem ofclimate change
Progress of the Fourth Industrial
Revolution and the digitaltransformation (DX)
Shortages of human resources andfuture leaders caused by the shrinking
and aging of Japanʼs population;
depopulation around large cities andin rural areas
Tight ﬁnancial conditions caused bydeclining tax revenues in the face ofthe shrinking population and the needto deal with natural disasters andinfectious disease
Contraction and streamlining of public
services due to tight ﬁnancial
conditions; increasing reliance on
private-sector companies
Demolition, consolidation, eﬀectiveuse, and replacement of aging andunderutilized infrastructure, houses, etc.

Opportunities

Risks/
Opportunities
Risks

Growth in demand for renewable energy, energy savings, and streamlining of
initiatives to realize carbon neutrality by 2050
Growth in demand for local production and local consumption of energy; rising
expectations with regard to disaster-prevention facilities and energy centers
Rising expectations with regard to eﬀective use of unutilized resources
and biomass
Growth in demand for the streamlining of initiatives that take advantage of digitaltechnologies
Strengthening of competitiveness through human resources development andmanagement that promotes diversity
Improvement in productivity and strengthening of competitiveness throughimprovements in the workplace labor environment(Materiality)1

Helping combat
climate change

2Conserving
resources andprotecting theenvironment

3

Strengthening
relationships oftrust withcustomers andcommunities

4

Pursuing
partnerships andinnovation

5

Promotingactivities of humanresources

6

7
23

P25

Ensuring safety
and healthStrengthening
corporate
governance

Customers
and regionalsociety

Reduction in domestic waste volume due to the shrinking of the population
Shortages of employees with specialized skills
Discontinuity in the passing down of skills as highly experienced employees leave
the workforce
Reduction in productivity and social trust due to problems involving safety andhealthLoss of opportunities for earning orders due to the occurrence of serious
occupational accidents
Reduction in business sustainability due to a lack of appropriate decision-making
Cessation of business due to violations of competition or environmental law or
regulations on conduct such as corruption, and associated reduction in social trust

Management Resources
and Strengths
Relationships of trustwith customers
Proposals crafted from thecustomerʼs perspective
Advanced plant design andconstruction capability founded on
proprietary technology developed
over many years of experience
Fast, precise after-sales service tominimize the impacts of problems on
customersʼ businesses and services

13th Medium-Term Management PlanEngineering throughout the plant life
cycle, from planning to construction
and operation

Our achievements
Boilers: About 3,200 units (of which,biomass boilers: about 630 units)
Waste incineration plants: About
360 facilities
Industrial waste treatment plants:
About 120 facilities
Sewage sludge incinerators:
20 facilities
Sand ﬁltration systems: More than
2,700 units
Tough, dedicated human resources whowill carry on Takumaʼs founding spirit
and work closely with customers in thespirit of good faith

P27

Business Strategies
Domestic Environment and Energy Business
Overseas Environment and Energy Business
Package Boiler Business
Equipment and Systems Business
Creative R&D

Sharing ofneeds andissuesTechnology and expertise

Human resources

Vision 2030

Increasing corporate value
while balancing contributions tosociety and sustained growth byimplementing ESG management

Changes in the environment, energy policy, and laws and regulations

INPUT

Key Issues

Realizing the Takuma GroupʼsManagement Principles
andProtecting the living environment
through the construction and operation of safe,
secure municipal solid waste treatment plants
Maintaining regional and industrial infrastructure
through the highly eﬃcient and stable supply of energy
Revitalizing the regional economy and strengthening
resilience through the construction and operation offacilities

initiatives that address Key Issues (Materiality) throughCustomers

Innovation

TakumaGroup

Environment
Creating clean energy
Reducing greenhousegas emissions
Reducing environmental
impacts

OUTPUT

Provision oftechnologies(products) andservices
We resolve Key Issues
and accommodate
customer needs
through innovation.

Resolution ofchallenges
Provision oftechnologies
and services

Strengthening the management foundation
Human resources Digital technologies Partnerships
R&D; manufacturing and engineering capabilities
Capital investment Compliance

FY2021 results( OUTCOME )Net sales

JPY 134,092 million

Building stable relationships of trust
through fair and safe transactions

Ordinary proﬁt

JPY 10,647 million
Proﬁt attributable toowners of parent

JPY 7,434 million

Energy plants

ROE

Water treatment plants

8.1%

Power retail business

Dividends

After-sales service
for plants(operation management,
maintenance)

JPY 36 per share

Air-conditioning,water, and wastewaterequipment installation
services

Business
partners

P77

Municipal solid waste
treatment plants

General-purpose boilers
such as compact
once-through boilers andvacuum-type hot water
heaters

Society

Created
Value

Employees

Realizing a workplace environment
characterized by health, safety,
high productivity, and high motivation(Fiscal year ended March 2022)

Shareholders

Increasing corporate value

Equipment for use
in the semiconductor
manufacturing industry
such as clean devices
and cleaning systems
TAKUMA CSR Report 2022

24

Section 01

Growth Strategies

The Takuma Groupʼs management strategy

Key Issues (Materiality)

Identiﬁcation process

Materiality and issues

E

Environmental
Initiatives

1. Promoting renewable energy (non-fossil energy)
2. Improving energy eﬃciency

Conserving resources and protecting theenvironment
1. Conserving resources and reducing environmental impacts
2. Making eﬀective use of unutilized resources

Further strengthening relationships of trustwith customers and communities

Evaluating their importance andverifying suitability

Identifying Key Issues

We analyzed a variety of management issues that aﬀect thecompany from the dual perspectives of the external and internal
environment.
We compiled a list of 64 issues by analyzing the external
environment from the standpoint of ISO 26000, GRI, SDGs, FTSE,
DJSI indicators and requirements, and the internal environment fromthe standpoint of indicators provided by the Groupʼs Management
Principles, strategies, current initiatives, and other yardsticks.

We created a matrix organizing the 64 issues describedto the left by analyzing and evaluating their importancefor stakeholders and society on the vertical axis andtheir importance for Takuma on the horizontal axis. We
then veriﬁed the suitability of the list through a processthat included steps such as comparisons with othercompanies and exchanges of views with responsible
departments to narrow down the list of Key Issues to 19
that deserved to be addressed by the Group.

Through discussions among membersof the companyʼs executive
leadership, seven Key Issues to beaddressed by the Group were ﬁnalizedbased on the 19 issues as describedto the right.

Risks and opportunities
Risks
Accommodation of policies and regulations intended to realize a decarbonized society● Changes in customer requirements, for example additional improvements in energy efficiency● Reduction in support from policies, for example as a result of the review of the FIT program

S

SocialInitiatives

Opportunities
Growth of appropriate treatment of waste and growth in demand for use of energy fromwaste in emerging nations● Growth in expectations towards resource-saving and low-environmental-impact systems andthe effective use of unutilized resources●

Risks
Loss of trust in the event Takuma fails to provide safe, high-quality products and services● Shrinking budgets of local governments●

Opportunities
Growth in demand for biomass power generation as a type of energy that can be produced
and consumed locally● Growth in expectations toward the creation of new value for communities, for example
through disaster prevention facilities and energy centers● Additional growth in the use of private-sector entities to provide government services

Pursuing partnerships and innovation●

1. Utilizing digital technologies (AI, IoT, robots, etc.)
2. Developing open partnerships
3. Pursuing innovation

Promoting activities of human resources

Ensuring safety and health
1. Ensuring occupational safety and health
2. Managing employee health
3. Creating a comfortable working environment

GovernanceInitiatives

Risks
Reduction in domestic waste volume due to the shrinking of the population●●

1. Securing and training human resources
2. Promoting diversity
3. Improving employee satisfaction

G

Opportunities
Growth in the market for renewable energy and environmental businesses due tostrengthening of environmental regulations● Growth in energy usage demand for biomass (including waste, sewage sludge, and otherresources) in order to alleviate climate change●

1. Pursuing customer satisfaction
2. Ensuring the stable, continuous operation of plants and equipment
3. Recycling local resources and creating new value for communities

Strengthening Corporate Governance
1. Strengthening corporate governance
2. Strengthening risk management
3. Ensuring compliance

Step 3

Analyzing the status quo andorganizing issues●

Helping combat climate change

Step 2

Step 1

In implementing ESG management, we have identiﬁed
seven Key Issues (Materiality) related to ESG thatdeserve to be given priority when being addressed
through our business activities during 2021.
We are practicing ESG management to address each
Materiality while balancing contributions to customers
and society and sustained growth by developing ourbusinesses based on the Medium-Term Management
Plan and providing necessary technologies andservices.

Risks
Opportunity loss due to lag in accommodating new technologies such as Artificial
Intelligence (AI) and the Internet of Things (IoT)

Opportunities● Growth in demand for efficiency-boosting and labor-saving technologies in plant operation(remote monitoring and operation, data analysis, maximization of amount of power sold, etc.)● Creation of revolutionary technologies and services as well as new business opportunities
through the expansion of partnerships
Risks
Reduction in competitiveness due to a shortage of employees with specialized skills
Discontinuity in the passing down of skills as highly experienced employees reachretirement age and leave the workforce●●

Opportunities
Strengthening of competitiveness through human resources development and managementthat promotes diversity

●

Risks
Reduction in productivity and social trust due to problems involving the safety and healthof employees and affiliates (loss of order opportunities due to the occurrence of serious
occupational accidents, etc.)

Extremely important

Key Issues (Materiality)

Importance for stakeholders
and society

The following process was used to identify Key Issues.

ImportantSpeciﬁc initiatives

KPI

Supply of biomass power plants
Supply of fuel conversion (biomass, RPF, etc.) boilers● Supply of renewable energy and CO₂-free power● Reduction in CO₂ emissions (energy consumption) by Takuma● Improvement in energy efficiency at facilities Takuma operates
on a contractual basis● Proposal of energy efficiency improvements for customer
facilities and equipment

CO₂ emission reduction targets through our own products and services
Magnitude of potential reduction in CO₂ emissions due to newly
delivered power plants*
・FY2023: 800,000 tons per year
・FY2030: 2.5 million tons per year
*Biomass power plants and Energy from Waste plants delivered fromFY2021 to FY2030

●
●

P47

Supply of high-efficiency, low-environmental-impact Energy
from Waste plants
Supply of sewage sludge-fueled power plants● Supply of advanced treatment sand filter systems● Establishment of combustion technology for unutilized biomass● Development of technology for reusing bottom ash● Development of technology for recovering andP47
using CO₂●●

Newly certified from FY2022 In-house CO₂ emissions reduction targets
・ FY2023: Eﬀectively zero CO₂ emissions by the Takuma Head Oﬃce
and the Harima Factory (Scope 1 and Scope 2)
・ FY2030: Eﬀectively zero CO₂ emissions by all Takuma worksites (HeadOﬃces, branch oﬃces, factories, and construction sites) (Scope 1 andScope 2)
*FY2030 targets including group companies remain under consideration.
*CO₂ emissions from procured products and use of Takuma products bycustomers (Scope 3) also remain under consideration.

Extremely important
as identiﬁed

Helping combat climate change
Conserving resources andprotecting the environment
Strengthening relationships of trustwith customers and communities
Pursuing partnerships and innovation
Promoting activities of human resources
Ensuring safety and healthStrengthening corporate governanceImportance for
the Takuma Group

Extremely important

Progress (FY2021)

CO₂ emission reduction targets
through our own products andservices
Magnitude of potential reduction
in CO₂ emissions due to newly
delivered power plants
・FY2021: 30,000 tons per year**Calculated based on available
generating capacity (renewableenergy) as of one month after
delivery for plants delivered in
FY2021 (two waste treatment
plants, one sewage sludge plant,
and four biomass plants).

Supply of products and services that satisfy customers
Improvements in the quality of Takumaʼs operation and O&M
businesses● Increasing sophistication of maintenance service● Initiatives addressing the Regional Circular and Ecological
Sphere (Regional CES), regional use, and decentralized power
supplies● Initiatives such as PPP that address additional useof private-sector entities
P57●●

Increases in the added value of facilities and plants
Strengthening of competitiveness in EPC operations, operation
management, and maintenance service● Pursuit of open innovation● Pursuit of new businesses that contribute to the enhancementof existing businesses and services● Development of technologies and products that aresought by society and customers
P59●●

Hiring of new graduates and mid-career employees
Development of optimal human resources programs in response
to social changes● Development of an effective training system● Active hiring of diverse human resources anddevelopment of career support programs
P61●●

Number of female employees brought into the main career trackand management positions
35 or more
(Cumulative total for FY2021 to FY2025)

Number of female employees
brought into the main career
track and management positions
10

Percent utilization of parenting support programs
25% or greater(Average for FY2021 to FY2025)

Percent utilization of parenting
support programs
32％

Number of fatal accidents０

Number of fatal accidents
1

Number of serious compliance violations
０

Number of serious complianceviolations
０●

Opportunities
Improvement in productivity and strengthening of competitiveness through improvements inthe workplace labor environment

●
●
●

●

Risks
● Reduction in business sustainability due to a lack of appropriate decision-making● Cessation of business due to violations of competition or environmental law or regulations
on conduct such as corruption, and associated reduction in social trust
Opportunities
Improvement in the ability to create value along with avoidance and reduction of risk as aresult of strengthened corporate governance●

Reduction in the occurrence of occupational accidents
Prevention of health problems and rectification of overwork
Implementation of workstyle reforms

P63
Sustained improvement through practices such as evaluationsof the effectiveness of the Board of Directors
Continued conduct of appropriate internal audits● Additional improvement in the effectiveness of risk management
activities● Even more thorough project risk management● Implementation and ongoing reassessment of BusinessContinuity Planning (BCP)● Ongoing implementation of compliance education
●

●

P65

*For more information about the reasoning underlying our Materiality identiﬁcation process, please see the Takuma website.

25

TAKUMA CSR Report 2022

26

Section 01

Growth Strategies

The Takuma Groupʼs management strategy

13th Medium-Term Management Plan
The 13th Medium-Term Management Plan began in FY2021 as an eﬀort to realize the Vision 2030 goal ofachieving ordinary proﬁt of JPY 20 billion. The plan lays the foundations for further growth and takes the ﬁrst
steps towards realizing the planʼs goals. Under it, we will strengthen conventional businesses by reinforcing theGroupʼs management foundation and at the same time accelerate its response to future environmental
changes. We will strive to realize sustainable growth alongside customers and society by implementing ESG
management through our business activities.

Targets for the period covered by the 13th Medium-Term Management Plan
FY2021 to FY2023

JPY

Total ordinary proﬁt:
FY2021 to FY2023

JPY

Total orders received:(Billion JPY)
200

191.0

188.6

179.8

177.1

180

148.8

113.1
99.9

120
100

116.3

11.6

118.2

450 billion(reference)(Billion JPY)
20

192.2

18

170.0

160
140

36 billion

122.0

143.0

14

12.5
10.3

9.6

134.0

134.5

12.3

10.7

16

146.7

11.0

12

10.6

10

80

8

60

6

40

4

20

2

0

2015

Left scale:2016

Orders received

2017
Sales

2018
Right scale:

2019

2020

2021

Ordinary profit

2022(Forecast)

2023

0

Basic policy

Strengthening
the managementfoundation
P29・30

Human resources
Digital technologies
R&D, manufacturing,and engineering
capabilities
Capital investment
Partnerships
CompliancePursuit of business activities
that help resolve challenges
faced by customers andsociety❶ Municipal Solid Waste
Treatment Plant Business❷ Energy Plant Business❸ Water Treatment Plant
Business❹ Power Retail Business❺ Overseas Businesses❻ New Businesses❼ Package Boiler Business❽ Equipment and Systems
Business

P32
P33
P34

Progress towards
implementing
the 13th
Medium-Term
Management Plan

Kunio Hamada
Director &Managing Executive Oﬃcer
Executive Manager ofCorporate Planning &Administration Division

FY2021 results

During FY2021, the Takuma Group posted net salesof JPY 134 billion and ordinary proﬁt of JPY 10.6
billion. Although both revenue and proﬁt fell comparedto the previous ﬁscal year, we set an all-time record fororders received thanks to robust demand, including
replacement demand for municipal solid waste treatment plants. The order backlog is growing favorably
since we are steadily booking orders for Design, Build,
Operate (DBO) projects involving such plants.

Reﬂections on FY2021 initiatives

Reﬂecting the yearʼs positioning as a time for laying
the foundation for achieving Vision 2030, we hired
more human resources than in a normal year andfostered their development in an eﬀort to secure
enough staﬃng, primarily in the Engineering, Procurement, and Construction (EPC) business and in recurring revenue model businesses, as we look to realize
sustained growth. In addition to working to increase
productivity through utilization of digital technologies,
we are developing proposals for increasing added
value by using AI in products and services. We arealso updating our Harima Factory, which produces theboilers and combustion equipment that lie at the heartof the plants we manufacture, in order to transform it
into a new plant capable of addressing issues likeaging of equipment and the passing on of production
technologies to a new generation of workers. The newplant is scheduled to be completed in December
2022.
In addition, the 13th Medium-Term Management Plan
identiﬁes a number of issues with which we must

contend in order for the Group to realize sustained
growth alongside society and our customers as Key
Issues (Materiality). We are working to address thoseissues through our business activities. We are pursuinga variety of initiatives, including R&D targeting eﬀective
use of CO₂ and the development of programs and an
environment in which female employees and othercomponents of a diverse workforce can ﬂourish professionally.

Prospects as we look towards 2030

We are steadily capturing demand in the current
EPC business, and we are tapping recurring revenue
model businesses such as after-sales service of delivered plants and the supply of power as drivers ofgrowth. In addition to developing structures through theMedium-Term Management Plan so that we can consistently earn orders for Energy from Waste plants andbiomass power plants, particularly in Southeast Asia,
we will work to develop businesses that complement
the direction in which society is moving, for example bycommercializing decarbonization technologies, realizinga cyclical economy, and implementing the Regional
Circular and Ecological Sphere (Regional CES). With
the above initiatives, we will strive to realize our future
vision as stated in Vision 2030̶“aim to maintain ourrole of being an indispensable presence in society as aleading company in the ﬁeld of renewable energy utilization and environmental protection by realizing sustained growth alongside our customers and society
through implementation of ESG management”̶ and toachieve its target of ordinary proﬁt of JPY 20 billion.

Implementing
ESG
management

P35
P36
P37
P38

Hiroshi Oishi
Director & Executive Oﬃcer
Executive Manager ofCorporate Services Division

27

TAKUMA CSR Report 2022

28

Section 01

Growth Strategies

The Takuma Groupʼs management strategy

Strengthening
the management foundation
We will work to strengthen the following six
core areas of our management by allocating
and investing management resources to steadily
implement our business strategies.

Human resources
Theme 1

R&D, manufacturing, and engineering capabilities

Strengthening recruiting activities
and reviewing employment systems

Theme 1●Creating products and services required in this new era by utilizing
open innovation●Systematically hiring new graduates and mid-career
employees●Reviewing programs to make use of older workers
and to hire specialized workers

Theme 2

Theme 2

Reviewing the human resources
development system

Pursuing workstyle reforms andenhancing the workplace environment●Examining a diverse range of workstyles without
regard to time or place●Implementing health-focused management

Bringing digital technologies to
products and services●Rolling out digital technologies to reduce manpower
requirements and streamline operations at plants,
improve maintainability and functionality, and realize
more stable operations

Theme 2

Improving management eﬃciency●Implementing paperless workﬂows and Robotic
Process Automation (RPA)●Sharing knowledge and expertise on a companywide
basis

Progress
In addition to reﬁning existing plant-related
technologies and pursuing joint research anddevelopment into decarbonization technologies
with other companies and universities, we worked
to prevent occupational accidents, for example bymaking work equipment safer and oﬀering
VR-based hazards experience education.

Progress
We were able to signiﬁcantly increase the number of people participatingin recruiting information sessions by adopting a hybrid format thatcombines in-person and online components. Career hires also rose,particularly in the Construction Division and Engineering Division. Hiringof female employees is also rising gradually. Other initiatives included
broadening the scope of short-time work for parenting and reviewing ourtelework program. P61・62

Digital technologies
Theme 1

Strengthening manufacturing andengineering capabilities●Reﬁning and improving the quality of core technologies, the overallplant, and main equipment●Increasing intrinsic safety in design and installation, and preventing
occupational accidents●Implementing career development support measures
such as job rotation programs to help trainengineers and other personnel, programs to follow
up on the development of young workers, etc.

Theme 3

Strengthening R&D

Progress
In addition to developing and rolling out technologies that help improveadded value, including use of AI in combustion control technology andtechnology for realizing staﬃng reductions through remote control fromour Solution Lab (a remote monitoring and operational support facility),
we reviewed business workﬂows and other operations and madeprogress computerizing them and utilizing Robotic Process Automation(RPA).

Capital investment
Theme

Pursuing plans forthe new Harima Factory●Developing a sustainable plan thataims to achieve eﬀectively CO₂emission-free operation●Improving boiler manufacturing
capabilities (quality and eﬃciency)●Examining ways to utilize theSupply Lab(Photograph of construction progress at the new Harima Factory) Date: June 16, 2022
Scheduled completion: December 2022 Capital investment: Approx. JPY 13 billion

Partnerships
Theme

Compliance

Creating new value
through alliances

Theme●Pursuing robust partnerships with non-groupcompanies and other stakeholders in a varietyof contexts

Increasing the eﬀectiveness ofcompliance and risk management●Improving and enhancing educational programs●Continuing and improving risk management
activities

Principal ﬁgures related to our eﬀort to strengthen our management foundation as are follows:

2022

FY

2016

2017

2018

2019

2020

2021

(Forecast)

Capital investment

342

505

638

1,564

2,420

3,844

9,000

R&D costs
Number of employees

972

928

960

1,154

1,047

1,006

1,600

3,447

3,609

3,619

3,816

3,925

4,145

ー

824

837

852

875

894

958

ー

(consolidated)

Number of employees(non-consolidated)

29(Millions of yen)

TAKUMA CSR Report 2022

30

Section 01

Growth Strategies

Business Strategies

Domestic Environment andEnergy BusinessBusiness Strategies
Business Composition

Domestic
Environment
and Energy

Equipment and systems

Takumaʼs business domain consists of four
segments: Domestic and Overseas Environment
and Energy Businesses, a Package Boiler
Business, and an Equipment and Systems
Business. The Domestic Environment andEnergy Business accounts for about 80% of
total net sales. Although the precise proportions
vary with the nature of ongoing Engineering,
Procurement, and Construction (EPC)* projects,
the municipal solid waste treatment plantbusiness generally accounts for about 60% ofsales in the Domestic Environment and Energy
Business, while the energy plant businessaccounts for about 30%, and the water
treatment plant and other business, about 10%.

6%

Package boilers

81%

12%

Water
treatment,
other

6%

Overseas
Environment
and Energy

FY2021
net sales:23%

JPY 134 billion

Energy22%

1%

Municipal
solid waste(EPC)

Municipal
solid waste(after-sales service)

30 %

（P）

2

Recurring revenue model businesses(after-sales service)
About 20 to 30 years

Construction
andcommissioning

After-sales service（C）

The plants Takuma delivers are called upon to operate in a stable and consistent manner for an extended period of time,
generally 20 to 30 years, as key infrastructure that not only supports treatment of local waste, but also supplies power andheat. After spending several years constructing each plant, we build relationships of trust by supporting customersʼ
government services and business activities through continuous after-sales service over the course of the next two or three
decades. By putting the technologies and expertise we have accumulated through such operations to use in EPC andafter-sales service, we operate our businesses while further enhancing our strengths.

31

We provide solutions that extend throughout the plant life cycle, from construction (EPC) of municipal solid waste treatment
plants for local governments to maintenance, primary equipment improvement and service life extension, operation management,
and O&M*.
Since delivering Japanʼs ﬁrst domestic 24-hour operating waste incineration plant in 1963, Takuma has delivered more than
360 waste incineration plants, the most of any domestic manufacturer. In addition to supplying products and services that meetregional needs based on the technology and expertise that we have accumulated through a long series of improvements acrossmore than half a century, we have been working to further increase the value we provide by incorporating leading-edge
technologies like Artiﬁcial Intelligence (AI) and the Internet of Things (IoT).
Waste incineration plants, biogas recovery plants, recycling plants, etc.

EPC
About 2 to 5 years（E）

Business overview and strengths*O&M: Operation & MaintenanceBusiness Model (Domestic Environment and Energy)

Procurement
andproduction1

Principle products*EPC: A turnkey service extending from plant design toprocurement and construction

Engineering

Municipal Solid Waste Treatment Plant Business

Market environment

Of Japanʼs approximately 1,000 operational waste incineration plants, which together have a daily treatment capacity of about
170,000 tons, about 60% have been operating for at least 20 years, highlighting the extent to which equipment aging is aserious issue as well as the resulting outlook for replacement and service life extension demand in the near term.
Use of the O&M business, which comprises a comprehensive contract for facility operation management and maintenance, andDBO arrangements, which comprise orders for both facility construction and O&M, is growing from the standpoint of taking
advantage of private-sector expertise. At the same time, facilities are expected to provide functionality that creates new value for
their region, for example by serving as regional disaster prevention facilities or energy centers, rather than simply treating waste.
Moreover, as society works to realize carbon neutrality by 2050, demand for Carbon dioxide Capture, Utilization and Storage (CCUS)
is expected to grow in the medium and long-term, augmenting a trend that is also supported by adoption of increasingly advanced
use of power and heat from waste and combined systems that pair incineration with technologies like methane fermentation.

3

Initiatives

We work continually to capture orders by oﬀering proposals that meet a diversifying range of customer and community needs,
and during FY2021 we earned orders for three DBO projects. In addition to launching long-term operation (on the order of 10 to
20 years) projects at ﬁve new sites, including DBO projects, we are leveraging new orders to steadily expand our recurring
revenue model businesses by crafting proposals for optimal solutions that meet individual customersʼ needs.
We are also moving forward with initiatives to reduce power and labor in plant operation by utilizing digital technologies, forexample by developing the Intelligent Control System (ICS), an AI combustion control system, and through remote operation andmonitoring via our Solution Lab, a remote monitoring and operational support facility. In addition, we are pursuing initiatives tohelp realize a decarbonized society in partnership with a variety of corporate and organizational partners, including by developing
technologies for isolating, recovering, and eﬀectively utilizing CO₂ emitted by plants and by participating in the Carbon to X (C2X)
project.

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Section 01

Growth Strategies

Business Strategies

Energy Plant Business

Water Treatment Plant Business

1

1

Business overview and strengths

In addition to construction (EPC) and maintenance of energy plants for private-sector operators, we oﬀer O&M and otherservices.
Since its founding in 1938, Takuma has delivered more than 3,200 boilers, both in Japan and abroad. Drawing on
proprietary combustion technologies and heat recovery technologies that we have improved and evolved together withcustomers over the course of that long history, we are helping customers and society helping customers and society
reduce and eliminate carbon dependency by supplying plants that recover energy from a variety of biomass resources andnon-fossil fuels, including wood, poultry manure, and RPF.

In addition to construction (EPC) and maintenance of water treatment and sludge treatment plants, particularly for sewage
treatment plants run by local governments, we supply operation management and other services.
Since entering the water treatment ﬁeld in 1962, we have accumulated technology and expertise by supplying water treatment
plants and sludge treatment plants in a variety of ﬁelds, including sewage, human waste, and industrial wastewater. In recent
years, we have been particularly focused on the sewage treatment ﬁeld, and we are helping resolve customersʼ issues with unique
technologies like an energy-saving and energy-creating sludge-fueled power system featuring low emissions of the greenhousegas N 2O and moving-bed sand ﬁltration systems (Uniﬂow Sand Filter), of which we have delivered about 2,700 units since 1979.

Principle products

Principle products

Biomass power and heat utilization plants, RPF power and heat-use plants, industrial waste treatment plants, etc.

Sewage sludge-fueled power plants, moving-bed sand ﬁltration systems (Uniﬂow Sand Filter), etc.

2Market environment

2Market environment

Since the introduction of the Feed-in Tariﬀ (FIT) program, which locks in purchase prices for renewable energy, demand forbiomass power plants has grown rapidly, and we have delivered more than 40 biomass power and heat utilization plants,
including facilities that are not eligible for the FIT program, since 2014, when we augmented our long experience in biomass
boilers by delivering our ﬁrst FIT-eligible unit. Today, changes to the FIT program and other factors are driving a shift in demand tosmall and medium-size biomass power and heat utilization plants to supply power for local use and to serve as locally produced,
locally consumed energy sources.
Additionally, many industrial boilers that use fossil fuels such as coal and heavy fuel oil, which are common in factory
applications, are due to be updated, and we expect that the level of need for conversions to non-fossil fuels such as biomass and
RPF will grow as society works to reduce and eliminate dependence on carbon.

There are some 2,200 sewage treatment plants in Japan, and those facilities are aging, with more than 80% having been
operating for at least 15 years.
As we work to realize a decarbonized society, demand for the ability to reduce emissions of greenhouse gases from sewage
treatment and to utilize sewage sludge, a type of biomass, as renewable energy is growing.
At the same time, utilization of private-sector structures such as Public Private Partnerships (PPPs) and Private FinanceInitiatives (PFIs) is expected to continue to grow due to the challenging business environment in which local governmentsʼ
sewage services operate.

33

Initiatives

We are working to steadily capture orders for biomass power plants, especially the small and medium-size facilities that
represent a key Takuma strength (with power output on the order of 2 to 10 MW), and during FY2021 we earned orders for six
new biomass power plants. In addition to securing an order for our third long-term O&M project for a private-sector entity, weoﬀered proposals for solutions targeting the ever-growing number of plants we have delivered, including precisely targeted
maintenance service, energy savings, power output enhancements, improvements in equipment functionality, and service life
extensions. In this way, we are helping customers both resolve issues and reduce carbon dependency while steadily growing ourrecurring revenue model businesses.
We launched a CCUS technology study using a biomass power plant currently under construction as a model, and we are
actively moving forward with studies and research geared towards future decarbonization and resource and environmental
conservation, for example through eﬀective use of biomass combustion ash.
We will continue to contribute to increased adoption of renewable energy and eﬀorts to reduce and eliminate carbon
dependency in customersʼ business activities through increased deployment of power and heat utilization plants that use
biomass and non-fossil fuels in response to plans and proposals that precisely assess customersʼ issues and needs.

33

Business overview and strengths

Initiatives

We have been oﬀering customers equipment update proposals that take advantage of the features of the high-speed sandﬁltration systems we have developed, and during FY2021 we secured multiple orders in this product area, including a large
project for the Bureau of Sewerage Tokyo Metropolitan Government (Ochiai Water Reclamation Center). These systems, which
deliver two to three times the ﬁltration capacity of past designs, feature a compact, space-saving design, making it possible toreduce the number of basins that must be installed as well as the time required for construction compared to the alternative of
replacing existing ﬁxed-bed sand ﬁltration systems.
In addition, a generator-equipped sewage sludge incineration plant that we built (Sapporo City Seibu Sludge Treatment Center)(“New System 1”), our second such project, began operating in August 2021. With power output of 200 kW, the generation
system is making a signiﬁcant contribution to reducing greenhouse gas emissions, for example by providing about 80% of theplantʼs power needs. We will continue to help reduce greenhouse gas emissions in sewage treatment by working continually tosecure orders.

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Section 01

Growth Strategies

Business Strategies

Overseas Environment andEnergy Business

Power Retail Business

1

Business overview and strengths

Group company Takuma Energy Co., Ltd., operates a power retail business using primarily power generated by municipal solid
waste treatment plants and biomass power plants delivered by Takuma.
The company was established in August 2015 to oﬀer services that increase the added value of plants delivered by Takuma
through the procurement and supply of power. Takuma Energy is taking advantage of its relationships with customers and groupcompanies to contribute to the adoption of regional renewable energ y, for example by operating a local power
production/consumption business by supplying power generated at municipal solid waste treatment plants and biomass power
plants to public facilities and other sites in the surrounding community, a service that it currently oﬀers in seven communities.

2

Market environment

Demand for decentralized energy and local production and consumption of power is rising from the standpoint ofconsiderations such as ensuring a supply of energy in times of emergency, eﬃciently utilizing energy, and revitalizing local
communities. Against that backdrop, we expect the importance of power and energy services in the Groupʼs business domains togrow in the future, for example in development of the Regional Circular and Ecological Sphere (Regional CES) for waste
treatment and regionally utilized power supplies in the FIT program.
Additionally, the level of need for renewable energy and CO₂-free power that have environmental value is growing from theperspective of reducing and eliminating dependence on carbon in business activities. The market is expected to grow further associety works to realize carbon neutrality by 2050.

3

Initiatives

In addition to starting to supply power to public facilities and other sites in the cities of Imabari, Ehime Prefecture, andMachida, Tokyo, as part of our local power production/consumption business, we have started supplying locally produced,
CO₂-free power to contribute to decarbonization in the village of Kunohe, Iwate Prefecture, with which we have entered into anagreement, in partnership with Iwate-Kenpoku Clean Co., Ltd., a group company based in the village that operates a waste
treatment business. (Service in all three locations was launched in April 2022.)
We also began supplying 100% eﬀectively renewable energy to the Head Oﬃce and Harima Factory in April 2022. Thanks tothis initiative, we expect to reduce CO₂ emissions at Takumaʼs Head Oﬃce, branches, and factory by about 80%.
In addition to continuing to contribute to measures to address climate change through the supply of renewable energy-derived,
CO₂-free power, we will help resolve regional issues, for example by proposing local power production and consumption schemesthat have been custom-tailored for speciﬁc communities.

35

Overseas Businesses
1

Business overview and strengths

We supply construction and maintenance services for biomass power plants and Energy from Waste plants with a focus on
Thailand and Taiwan, where we have local subsidiaries.
Since delivering a bagasse ﬁred boiler (bagasse: the residual material left after pressing sugarcane) to a customer in Taiwan in
1949, we have delivered more than 380 biomass boilers to overseas customers, primarily in Southeast Asia. We have alsodelivered about 120 boilers, primarily to sugar reﬁneries in Thailand making a signiﬁcant contribution to the development of thecountryʼs sugar industry.
We have also delivered a total of 16 waste treatment plants to customers in Taiwan, China, South Korea, and the UK sincedelivering our ﬁrst such plant overseas in the U.S. in 1986.
Principle products
Biomass power plants, Energy from Waste plants

2

Market environment

Although a certain level of demand is expected to continue for bagasse-fueled biomass power plants, the business environment
remains characterized by intense competition with Indian and Chinese manufacturers. At the same time, the Thai government hasannounced a policy of promoting biomass power generation, and demand, including for biomass other than bagasse, is expected
to grow.
On the other hand, Energy from Waste projects in the emerging nations of Southeast Asia are often derailed for reasons suchas a lack of programs and standards related to waste treatment and insuﬃcient government funding, and a stable market has not
yet developed. Nevertheless, the level of need for waste-fueled power generation is rising signiﬁcantly due to population growthand urbanization, and we expect the sector to remain a growth market over the medium- and long-term.

3

Initiatives

Despite a tough environment in FY2021 whose challenges included the pandemic, which greatly limited sales activities, aswell as delays in plans and other adverse developments, we earned an order for an equipment replacement project at an Energy
from Waste plant in Taiwan. Demand for facility replacement and service life extension work is rising in the country as Energy
from Waste plants built from the second half of the 1980s to 2000s age. We will continue to put in place structures to help us
secure orders, including through partnerships with local companies, as we look to tap future demand, particularly in Thailand andTaiwan.
In addition to working to further lower costs for biomass power plants, for example by enlarging the scope of overseas
procurement, we will strive to capture orders on an ongoing basis by increasing added value to diﬀerentiate our products andservices from competitors, including by enhancing maintenance service through our subsidiary in Thailand.

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Section 01

Growth Strategies

Business Strategies

Package Boiler Business
Package Boiler Business

Equipment and Systems Business

1

1

Business overview and strengths

Group company Nippon Thermoener Co., Ltd., manufactures, sells, and maintains general-purpose boilers in addition to
designing and building related heat source equipment and systems for various types of manufacturing plants as well as hotels,
hospitals, commercial buildings, and other facilities.
Over the many years since its establishment in 1961, Nippon Thermoener Co., Ltd., has supported consumer lifestyles as wellas industry by accumulating extensive experience in an array of package boilers, which are used in a variety of industries andapplications. In an eﬀort to accommodate the changing times and environment as a manufacturer specializing in heat source
equipment, the company meets a diverse range of customer needs by developing new heat source systems such as hybrid hot
water systems based on the technological capabilities and expertise it has accumulated over its long history.
Principle products
Once-through boilers (Equos), vacuum-type hot water heaters (Vacotin Heater), heat-transfer oil boilers (Thermoheater),smoke tube boilers (RE Boiler), hybrid hot-water systems, etc.

2Market environment

Although the domestic general-purpose boiler market has matured and will shrink over the medium- and long-term, we expect
demand for equipment replacement and related services to continue in the near term due to the large size of the installed base.
Additionally, demand for energy-saving boilers is expected to increase overseas, particularly in emerging nations. We expect
eﬀorts to gain additional energy savings and eﬃciency gains from boilers as part of the larger drive to reduce and eliminate
carbon dependency to accelerate and the market to shift to heat-source systems that use non-fossil fuels over the long-term.

3

Initiatives

While demand, which had fallen due to the COVID-19 pandemic, has shown signs of a partial recovery, the market remained
challenging during FY2021 as a full-throated recovery failed to materialize. Nonetheless, we worked to maintain the scale oforders, for example by proposing optimal systems, and initiatives to open up new markets for heat-source equipment made some
progress as we continued to earn orders for wood chip-fueled biomass boilers.
Going forward, we will work to maintain and increase the scale of orders earned in the domestic market by continuing toprovide a diverse line of products and by proposing systems that have been optimized to meet customersʼ needs. In addition to
supporting both consumer lifestyles and industry by working to enlarge our overseas business, particularly in Southeast Asia,
where our Thai subsidiary operates, we will contribute to reducing greenhouse gas emissions through adoption of high-eﬃciency,
energy-saving systems.
Moreover, we will strive to pioneer new markets based on our vision for a decarbonized society by supplying highly eﬃcientsystems that yield greater energy savings, for example hybrid hot-water systems that pair a heat pump with a vacuum-type hotwater heater, and new heat-source systems that utilize non-fossil fuels, for example wood chip-fueled biomass boilers.

37

Equipment and Systems BusinessBusiness overview and strengths

Group company Sunplant Co., Ltd., designs and installs a range of building equipment, including air-conditioning, water,
wastewater, and hygienic, and ﬁreﬁghting systems, while group company Dan-Takuma Technologies Inc. supplies clean
system-related equipment and devices that provide a suitable environment for prime manufacturing systems for the semiconductor
and electronic device manufacturing industry.
Sunplant, which operates a building equipment business, was established as a boiler installation company in 1941. After
entering the equipment construction business in 1965, the company began oﬀering a variety of building equipment for use ineducation and research facilities, healthcare and social welfare facilities, commercial and cultural facilities, plants, railroad
facilities, and other sites. In this way, it has supplied optimal environment that are custom-made to suit a variety of applications
and requirements based on the technology and expertise it has accumulated over many years.
Since its establishment in 1969, Dan-Takuma, which supplies equipment to the state-of-the-art semiconductor industry,
continues to make a steady contribution to the development of that industry based on more than half a century of experience inthe semiconductor and electronic device industry and a high level of trust built on its ability to solve issues from the customerʼs
perspective.
Principal products and services
Building equipment installation, chemical ﬁlters, magnetically shielded chamber equipment, semiconductor material
washing systems, AMC analysis and monitoring systems, etc.

2Market environment

Although construction demand has been aﬀected by a temporary drop-oﬀ in private-sector investment due to the eﬀects of thepandemic, we expect robust demand to continue over the medium and long term as orders for healthcare and social welfare
facilities augment equipment replacement and improvement work at aging public facilities.
Amidst rapid growth recently in demand for semiconductors in various industries, a global shortage has emerged as a social
phenomena, with industry observers pointing to an inability to obtain semiconductors used in semiconductor manufacturing
equipment. From a long-term perspective, the sector is expected to grow thanks to large-scale investment accompanying a global
supply chain decoupling in semiconductor manufacturing driven by national security issues of various countries and demand forinfrastructure maintenance and improvements.

3

Initiatives

In the building equipment business, we will work to further strengthen our sales and installation capabilities by securing andtraining human resources, and we will strive to achieve steady growth in the scale of orders received by creating optimal
environments that are custom-made to suit a variety of applications and requirements.
Drawing on favorable business performance that has gained momentum thanks to the recent market environment in thesemiconductor and electronic device manufacturing equipment ﬁeld, we will work to expand our business on an ongoing manner
through additional, stable contributions to customers and related industries as we build products and enlarge business
opportunities by implementing measures under our Medium-Term Management Plan.

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Section 01

Growth Strategies

Our Achievements

Main Recent Projects

Energy plants

This section introduces major projects delivered by Takuma during FY2021
in the Domestic Environment and Energy Business.

Municipal solid waste treatment plants
New Construction

Machida City
Bio-energy Center

Satsuma-cho Biomass Power Generation LLC
Project name

Project nameMachida City Heat Recovery Facility(tentative name) Development andOperation Project

Wood Biomass Power Generation Plant Design, Procurement,
and Commissioning Project

Location

Kagoshima Prefecture

Capacity

Fuel: Wood fuelSteam conditions (regular operation):11.1 tons per hour × 4.2 MPaG × 405 ℃
Power output: 1,990 kW

LocationTokyo

Meiken Lamwood Corp.
Project name

Wood Biomass Power Generation Plant Installation Project

Location

Okayama Prefecture

Capacity

Fuel: Wood fuelSteam conditions (regular operation):27.7 tons per hour × 6.0 MPaG × 425 ℃
Power output: 4,990 kW

Capacity

Waste incineration facility:
258 tons per day(129 tons per day × 2 units)
Biogas recovery facility:
50 tons per day(25 tons per day × 2 units)
Unburnable/bulk waste processing facility:
47 tons per 5 hours
Power output:
6,220 kW (waste incineration facility)
750 kW (biogas recovery facility)

Rikyuu Co., Ltd.
Project name

Wood Biomass Power Generation Plant Design, Procurement,
and Commissioning Project

Location

Kanagawa Prefecture

Capacity

Fuel: Wood fuelSteam conditions (regular operation):11.1 tons per hour × 4.2 MPaG × 405 ℃
Power output: 1,990 kW

Kyushu Renewable Energy Co., Ltd.
Project name

Kikuchi Biomass Power Plant Construction Project

Location

Kumamoto Prefecture

Capacity

Fuel: Wood fuelSteam conditions (regular operation):29.2 tons per hour × 6.0 MPaG × 425 ℃
Power output: 6,250 kW

Water treatment plants

New Construction

Primary Equipment Improvements

Ariake Himawari Center

Clean Center Tonami

Project nameLocation
Capacity

39

Waste Incineration Facility Construction Project
Fukuoka Prefecture
92 tons per day (46 tons per day × 2 units)
Power output: 1,810 kW

Project nameLocation
Capacity

Clean Center Tonami Primary Equipment Improvement Project
Toyama Prefecture
90 tons per day (45 tons per hour × 2 units)

Sapporo City Seibu Sludge Treatment Center
Project name

Sapporo City Seibu Sludge Treatment Center (Disaster Prevention
and Safety Grant Program) “New System 1” Incineration Facility
Incineration Machinery and Equipment Installation Project

Oita City Public Sewage Benten Water
Resources Recycling Center
Project name

Oita City Public Sewage Benten Water Resources Recycling Center
Amenity External Machinery and Equipment Renovation Project

Location

Hokkaido

Location

Oita Prefecture

Capacity

Stoker furnace
Facility scale: 100 tons per day × 1 unit
(Power output: approximately 200 kW)

Capacity

Treatment capacity: 6,900 ㎥ per day
Type: High-speed moving-bed continuous sand ﬁlter
Speciﬁcations: M20 × 4 units × 3 basins

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Feature

Realizing a
New Type ofSound MaterialCycle Facility

A bio-energy center thatprocesses municipal waste
together with a biogas
recovery facility―
the ﬁrst in the Tokyo
metropolitan area
and a leading facility
for the world
The City of Machida, the owner of this facility, has
worked to reduce waste volume in keeping with its
core philosophy of avoiding the generation,
incineration, and landﬁll of waste in order tosafeguard the local and global environment.
The Machida City Bio-energy Center, which wasdelivered by Takuma, breathes new life into its
predecessor facility, the Machida Recycling Cultural
Center, which previously handled waste treatment in
the city, as a more environmentally friendly facility.

Ma c h id a Cit y B io - e n e rg y Ce nte r

What is biogas?
Biogas is a gas that is created by using the power of microorganisms toferment waste and other materials. It contains methane, a readily
combustible gas, that can be used as a source of energy by gas power
plants. Biogas promises to help reduce carbon dioxide emissions byenabling waste to be used eﬀectively.

Facility overview
Name: Machida City Bio-energy Center
Treatment capacity: Heat recovery facility (waste incineration facility):
258 tons per day (129 tons per day × 2 units)
Biogas recovery facility: 50 tons per day (25 tons per day × 2 units)
Unburnable/bulk waste processing facility: 47 tons per 5 hours
Generation systems: Waste incineration facility: 6,220 kW; biogas recovery facility: 750 kW
Design and construction: Takuma Co., Ltd.
Operation: Machida High Trust Co., Ltd.
Project dates: December 22, 2016, to June 30, 2024 (start of operation: January 1, 2022)

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Feature
Machida City Bio - energy Center

An advanced exterior designthat blends into the surrounding environment

System combining methane fermentationand incineration components
using incineration as appropriate based on the propertiesof the waste being processed, the facility is able to makemaximum possible use of the energy contained in waste.
Additional power-generation initiatives at the site,
including solar power generation, micro wind power, andhydropower utilizing cooling water used at the facility,
further reduce CO₂ emissions.

This combined-system facility, which pairs methane
fermentation with incineration, consists of a biogas
recovery facility that recovers biogas from garbage throughmethane fermentation and a waste incineration facility thatincinerates waste that is not suited to methane
fermentation. By performing biogas power generation using
methane fermentation and steam turbine power generation
Methanefermentation tank

Biogas generator

The design limits the height of buildings at the site to
reduce its presence out of consideration for thesurrounding residential area. The administrative building,which welcomes visitors, adopts an advanced,
open-feeling design incorporating a curved roof and a
glass curtain wall. Incorporation of greenery into wall

surfaces and the roof creates synergistic eﬀects withsurrounding tree growth. The front of the facility
incorporates a gate park and three terraces that are open
to the public, creating spaces where residents can gather,meet, and relax.

Glass curtain wall

Ecovoid

Wall Greenery

Gate ParkSky Terrace

Work Terrace

Steam turbine generator(250 kW × 4 units, of which 1 serves as a spare)(6,220 kW)

Realizing local production and consumption of energy
Electricity generated at the facility
is supplied to the cityʼs sewage
treatment plant via Takuma EnergyCo., Ltd., while steam is used towarm the cityʼs heated swimming
pool, which is located adjacent tothe site, as part of a series of
initiatives to return energy createdfrom waste to the local community.

Electricity

Garbage, etc.

Electricity

Other garbage

Waste
incineration facilityPowersupply(Takuma
Energy)Biogasrecovery facility(high caloric content)Powerretailer

Sewagetreatment facility, etc.

Heat
supplySteam (heat)

Pool, etc. (city-operated)

A facility where visitors can learn, play, and growThe facilityʼs visitor area includes
unique spaces as well as hands-on
and experience-based exhibits thatlet visitors have fun while learning
about recycling at its bulk andunburnable waste treatment facility,
biogas power generation, and waste
incineration treatment.

A quiz about waste sorting

A hands-on booth where visitors
can learn about biogas power
generation systems

An experience-based learning
area where visitors can learn
about incineration

Message from the engineering coordinator

The facility features an earthquake-resistant design thatallows its buildings to continue functioning in the event thatan earthquake with a seismic intensity of 6+ were to strikedirectly underneath Tokyo. In addition, since biogas
generation in the siteʼs methane fermentation tanks cancontinue even in the event of an interruption in the supplyof outside power, the facility can continue to process waste
in the event of a disaster by relying on biogas power
generation and emergency power generation.
The administrative buildingʼs training room and large
conference room can be used as shelter space to accommodate
100 people in the event of an emergency, with power
generated on-site providing electricity for necessary lighting
and air conditioning. In addition to storing enough water for
300 people along with a variety of disaster-prevention

supplies, the facility has shelter-related equipment like theKamado Bench, a bench that can be converted intowood-ﬁred cooking stations, and underground sewage
pipes that can be connected to temporary toilets.

Conference room that can beused as shelter space in the eventof an emergency

Kamado Bench

Message from the operation management company

This composite facility combines conventional incineration and unburnable/bulk waste treatment facilities
with a biogas recovery facility, making it a state-of-the-art environmental facility that can generate electricity
from various types of energy (steam, biogas, solar power, hydropower, and wind power). Construction was
impacted by the COVID-19 pandemic, and I would like to thank everyone involved for the hard work thatmade a successful outcome possible despite constraints on meetings, supplies, and human resources. I hope
the Center will see long use as a regional energy facility and as an important place of environmental learning.

At-scale deliveries of waste began in November 2021, prior to the completion of the facility, which wasable to open on January 1, 2022, without major incident. As the Tokyo metropolitan areaʼs ﬁrst biogas
recovery plant, the facility is attracting attention from Tokyo and other nearby local governments. All of ouremployees look forward to working together to ensure the facility will be able to operate and supply energy
safely so that city residents can go about their lives with peace of mind.

Jun Watanabe Assistant Manager, Section 2, Environmental Design Dept. 3

Toru Shimajiri Site Manager, Machida City Bio-energy Center

Takuma Co., Ltd.

43

Contributing as a disaster-prevention facility
in times of emergency

Machida High Trust Co., Ltd.

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