Canadian Fund to Invest US$470 million in Japanese Renewables Firm
First direct infrastructure investment in Japan by CDPQ
Investment to boost Shizen Energy’s international growth
Japanese renewable energy firm Shizen Energy and Canadian institutional fund manager Caisse de dépôt et placement du Quebec (CDPQ) have agreed a 70 billion-yen (US$469.9million) co-investment deal.
Under the terms of the agreement CDPQ announced a 20 billion yen investment in Shizen Energy, and CDPQ and Shizen Energy also agreed to a co-investment framework, which will involve investments by CDPQ of 50 billion yen. In addition, CDPQ has obtained a seat on Shizen Energy’s Board of Directors.
The investment by CDPQ will allow Shizen Energy to accelerate its ongoing renewable power plant development activities, business enhancement initiatives in energy digitalization, and human capital expansion in key markets.
In Japan, Shizen Energy will continue to develop a variety of renewable energy sources, including ground and roof-mounted solar power, agri-solar power, onshore and offshore wind power, small-scale hydroelectric power, and biomass power.
Decarbonisation of Asia
In addition, Shizen Energy will conduct further research and development of its proprietary energy management systems to effectively utilise renewable energy.
For its overseas projects, Shizen Energy will continue to accelerate on-site and off-site power purchase agreement (PPA) in southeast Asia and Brazil, and will aim to work on large-scale solar and wind power generation projects in partnership with leading local companies.
Shizen Energy will deliver carbon-neutral technologies and solutions for corporations and municipalities, empowering local communities to accelerate the energy transition in Japan and overseas, primarily in APAC and Brazil.
Since 2016, Shizen Energy has been focusing on its overseas operations, expanding its development and power generation projects in areas such as Southeast Asia and Brazil.
In 2019, the company also entered the energy tech business, offering micro-grid and VPP construction, smart charging and discharging services for EVs, and other services through its self-developed energy management system.