erex Co.,Ltd.
9517・Prime Market・Electric Power & Gas
Business
erex Co., Ltd. is an independent power company founded in 1999, with a 2030 vision of becoming a pioneer of the new era of electricity centered on renewable energy. Domestically, the company operates four integrated businesses: electricity retail (high-voltage and low-voltage), biomass power generation (four power plants: Saiki, Buzen, Ofunato, and Nakagusuku), procurement and external sales of biomass fuels such as PKS and wood pellets, and electricity trading. Overseas, the company develops and operates renewable energy power plants primarily in Vietnam and Cambodia, and also plans to generate carbon credits utilizing the JCM (Joint Crediting Mechanism). Its main customers are corporate and individual electricity consumers nationwide as well as other biomass power generation operators. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company procures biomass fuel directly from Indonesia, Malaysia, Vietnam and other countries, generating electricity at its own power plants at fixed prices under the FIT scheme, while selling surplus fuel externally to other companies. Procured electricity is optimized through the trading function and sold to corporate and individual customers as high-voltage and low-voltage electricity retail. Through in-house fuel procurement, development of storage yards, and operation of pellet plants, the company secures cost competitiveness, resulting in a revenue structure in which the retail, power generation, and fuel businesses complement one another.
Company Strengths
The company operates a PKS storage yard in Indonesia and a wood pellet plant in Tuyen Quang Province, Vietnam (production commenced March 2025), and combines these with long-term supply contracts with Marubeni, Samsung C&T, and Hanwa (through the end of 2029) to procure PKS in FY2026 (ending March 2026) at prices below both plan and the previous year. Fuel wholesale sales grew 53.5% year on year to ¥22,750 million.
Four sales subsidiaries—Evergreen Marketing, Evergreen Retailing, and others—cover the entire country, offering fully fixed, hybrid, and market-linked plans for high-voltage customers. In FY2026 (ending March 2026), high-voltage electricity sales volume grew 21.4% year on year to 2,959 million kWh, and low-voltage supply contracts reached 268 thousand (up 11.6% year on year). Capital and business alliances with JFE Engineering and JR East also contribute to strengthening sales and aggregation functions.
The four biomass power plants in Saiki, Buzen, Ofunato, and Nakagusuku have received business certification under the FIT system, securing stable earnings through electricity sales at fixed prices. In FY2026 (ending March 2026), each plant operated largely as planned, with the Power Generation Business supporting the earnings base. The Itoigawa coal-fired power plant remains suspended in consideration of market conditions, maintaining an earnings structure focused on renewable energy.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥296,312 million in FY2023 (ended March 2023), up from ¥230,502 million in FY2022 (ended March 2022), during the period of surging energy prices, and has since trended downward: ¥244,977 million in FY2024 (ended March 2024), ¥171,217 million in FY2025 (ended March 2025), and ¥169,170 million in FY2026 (ending March 2026) (down 1.2% year on year). As an external factor, electricity market prices remained at low levels compared with the same period of the prior year, putting pressure on the unit sales price. On the other hand, operating profit improved for two consecutive periods, from a large loss of ¥19,851 million in FY2024 (ended March 2024) to ¥7,137 million in FY2025 (ended March 2025) and ¥7,518 million in FY2026 (ending March 2026) (up 5.3% year on year). Profit attributable to owners of parent increased substantially to ¥5,332 million (up 151.7% year on year), driven by the reversal of the impairment loss on the Itoigawa power plant and the provision for valuation losses on purchase commitments recorded in the prior period, growth in the Fuel Business, an improvement in financial income and expenses due to the continued yen depreciation (financial income of ¥1,466 million), and a turnaround to profit in share of profit of investments accounted for using the equity method (¥483 million). A change in the estimate of asset retirement obligations (an increase of ¥579 million each in operating profit and profit before tax) is also included as a temporary boosting factor.
Growth Strategy
Multi-axis growth through improvement of domestic retail earnings structure, expansion of external fuel sales, and phased commissioning of Southeast Asian power plants
In the high-voltage segment, the company is promoting a shift toward fully fixed-rate and hybrid plans while maximizing customer LTV. In the low-voltage segment, it aims to increase the number of supply contracts and improve profitability by leveraging its nationwide sales network to strengthen new customer acquisition at the time of relocation and by introducing value-added products. High-voltage electricity sales volume for FY2026 (ending March 2026) has already expanded by +21.4% year on year.
The company is expanding shipments from its Tuyen Quang wood pellet plant in Vietnam (production started in March 2025) to other domestic biomass power plant operators, and is strengthening its stable procurement and supply system for biomass fuel by developing customers outside the group. In FY2026 (ending March 2026), the Fuel Business's sales and profit have grown significantly, indicating that the external sales model is beginning to function.
A groundbreaking ceremony was held in December 2025 for two biomass power plants in Tuyen Quang and Yen Bai (now Lao Cai) provinces. Main equipment such as boilers and turbines has already been ordered, and EPC work is proceeding toward commissioning by the end of FY2027. Both projects have been adopted under the Ministry of the Environment's JCM Equipment Subsidy Program, and carbon credit generation is also expected.
Construction of the Cambodian hydroelectric power plant, scheduled for completion in June 2026, is progressing smoothly. Preparations are also underway for construction of a new biomass power plant (approval obtained from the Cambodian government in September 2024), with commercial operation targeted during FY2027. The company aims to diversify its overseas power generation portfolio geographically.
From September 2025 to January 2026, co-firing trials using wood chips and pellets were conducted at two existing coal-fired power plants of a Vietnamese state-owned enterprise subsidiary. On April 16, 2026, a memorandum of understanding was signed for joint study toward commercialization. The company aims for early commercialization of the business.
The company plans to bring JCM credits generated from overseas biomass power plants and coal-fired co-firing projects into Japan and monetize them through the GX-ETS market, which is scheduled to launch in April 2026, among other channels. This is positioned as a new medium- to long-term revenue source and a core pillar of the decarbonization strategy.
Last updated: July 19, 2026