CDPQ to invest USD 134m for Shizen Energy's energy transition
CDPQ, a global investment group, announced a JPY 20-billion （USD 134 million）investment in Shizen Energy. Shizen Energy and CDPQ have also agreed to a co-investment framework, which will involve investments by CDPQ of JPY 50 billion（USD 33million）. In addition, CDPQ has obtained a seat on Shizen Energy’s Board of Directors.
With fundraising initiatives in February this year with investors JIC Venture Growth Investments Co., Ltd. (JIC VGI) and SIGMAXYZ Investment Inc. (SIGMAXYZ Investment) which totalled JPY 4.4 billion, Shizen Energy has now reached fundraising agreements that total JPY 74.4 billion（USD 50million） this year.
Shizen Energy has already begun collaborating with SIGMAXYZ Investment on business development in the new area of energy tech, and Shizen Energy will join forces further with all the partners to co-create growth opportunities in the future.
These investments by CDPQ, JIC VGI and SIGMAXYZ Investment 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. In addition, Shizen Energy will conduct further research and development of its proprietary energy management systems to effectively utilize renewable energy. For its overseas projects, Shizen Energy will continue to accelerate on-site and off-site 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.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, says: “This transaction in Japan is an important milestone in the deployment of CDPQ’s long-term Asia-Pacific infrastructure strategy. Japan has a crucial role to play in the decarbonation of Asia, and as an investor with deep experience in renewable energy, we are delighted to be working with the Shizen team to deliver on their ambitious plan for the energy transition.”
Akira Suenaga, Partner of JIC VGI says: “Shizen Energy is an innovative company that is working to develop diverse renewable energy sources in many countries, including Japan, Southeast Asia, and Brazil, while leveraging the agility as a startup. We are proud to be able to contribute to the realization of a carbon-neutral society, which is an urgent issue not only for Japan but for the entire world, by accompanying the Shizen Energy team.”
Shunichi Shibanuma, President and Representative Director of SIGMAXYZ Investment, says: “The development of renewable energy power sources and decentralized energy systems are urgent issues that we must address on a global scale, and the energy transition that Shizen Energy aims to achieve is an important initiative toward the realization of a sustainable society. We believe that the more Shizen Energy’s business expands, the more livable the earth will become. We sincerely look forward to working with Shizen Energy to build such a regenerative business model through our investment and business support.”
Shizen Energy’s Co-founders and Directors Ken Isono, Masaya Hasegawa, and Kenji Kawado stated, “We are very honoured to form this partnership with CDPQ, which has been moving toward sustainable management for decades and is currently investing in the realization of a decarbonized society from an long-term perspective. Shizen Energy has been striving to achieve its purpose of ’We take action for the blue planet’, and we feel that even greater speed is required to resolve global warming and energy challenges. Through our collaboration with CDPQ, JIC VGI, and SIGMAXYZ Investm