CDPQ Announces $474 Million Investment in Japan Renewables Developer Shizen Energy
Global investment group, CDPQ, announced today investments of up to $474 million in Japanese renewable energy company, Shizen Energy, aimed at enabling the company’s growth in Japan and key international markets.
The announcement includes a $135 million investment by CDPQ in Shizen Energy, as well as an agreed co-investment framework involving potential investments of $339 million by CDPQ.
Shizen Energy Co-founders and Directors Ken Isono, Masaya Hasegawa, and Kenji Kawado said:
“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 a 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.”
The partnership comes as Japan’s looks to rapidly grow its renewable energy capacity. In July 2021, the government revealed details of its energy strategy, which included plans to roughly double the share of renewable energy to 36%-38% of the energy mix by 2030, compared to less than 20%. Japan has committed to reach net zero emissions by 2050, with an interim 2030 goal to reduce greenhouse gas emissions by 46% by 2030.
According to the companies, the new investments 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.
Shizen aims 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 Japan. Overseas, the company will accelerate on-site and off-site PPAs in southeast Asia and Brazil with aims to work on large-scale solar and wind power generation projects in partnership with leading local companies.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said:
“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.”