- Press Release
Establishment of the Decarbonized Tech Fund, specialized in overseas energy venture companies
ENECHANGE Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director & CEO: Yohei Kiguchi; Representative Director & COO: Ippei Arita) , announces the investment to the Decarbonized Tech Fund (hereinafter referred to as “the Fund”), which specializes in investing in overseas energy venture companies, established by Japan Energy Capital G.K., in whose operation ENECHANGE Ltd. participates.
In addition to ENECHANGE, Nihon Unisys, Ltd., and Toshiba Energy Systems & Solutions Corporation participate in the Fund. The Fund aims to expand its scale by seeking more investors in the future. In addition, through investments and alliances with leading overseas energy venture companies, we consider the establishment of the Fund to be a key strategy to strengthen our data business, which is centered on the 3Ds (Digitalization, Decarbonization, and Decentralization). The 3Ds are part of the 4Ds of energy (Deregulation, Digitalization, Decarbonization, and Decentralization), which have been defined as our business domain.
Background and strengths of the Decarbonized Tech Fund
Background of establishment
Many of the major countries in the world, including Japan, have agreed to implement measures to achieve carbon neutrality by 2050, and the world is rapidly moving toward the realization of a decarbonized society. Europe and the United States are at the forefront of this and are aggressively implementing solutions necessary to expand the use of renewable energy, energy efficiency, and the development of technologies required for the realization of a decarbonized society, such as electric vehicles (EVs), charging facilities, and storage batteries. The Fund was established with the aim of accelerating the path towards a decarbonized society by incorporating leading overseas technologies and businesses through the Fund, developing priority businesses in Japan, and generating business collaborations.
The Fund’s strengths
1. A UK-based network with a strong track record of interviewing over 100 international decarbonization tech ventures per year
ENECHANGE Insight Ventures (formerly Japan Energy Challenge) was established in 2018 as a program that aims to match energy ventures from around the world with Japanese energy-related companies. The program team has a track record of interviewing more than 100 energy ventures with exceptional technologies and achievements every year. Based on this network and track record, through the first Fund, we invested in Ambri Inc., a U.S. company that develops next-generation storage batteries, alongside co-investors including Bill Gates. We also invested in Sense, a U.S. company that is one of the world’s top companies in next-generation smart meter analysis technology. This second Fund will invest exclusively in ventures with superior decarbonization technologies and proven track records.
2. Supporting entry into Japan, the world’s largest electricity deregulation market
According to the CIA World Factbook, as of September 2021, Japan’s electric power demand ranks fourth globally after China, the United States, and India. In the United States, deregulation has been achieved only in a few states, while deregulation is yet to be introduced in other countries. Consequently, Japan is the world’s largest deregulated electricity market. Japan’s energy-related system is in a transitional phase, and is set to transform in the lead-up to the opening of a capacity market in 2024. The Fund will support market entry and localization in line with the institutional reforms by leveraging our knowledge and track record.
3. A strategic partnership in Japan
In addition to our company, Nihon Unisys, Ltd., and Toshiba Energy Systems & Solutions Corporation will participate in the Fund to support the entry of overseas energy venture companies into the Japanese market by leveraging their different strengths and knowledge of the energy industry.
Decarbonized Tech Fund Overview
|Fund Name||Japan Energy Capital 2 L.P.
Commonly known as Decarbonized Tech Fund
|Date of Establishment||September 30, 2021|
|Investment Method||Capital call method|
|Investment target||Overseas energy ventures in the decarbonization field|
|Fund Size||50 million USD (objective)|
|Operation Period||Until September 2031|
|Unlimited Liability Partner||Japan Energy Capital G.K.|
|Limited Liability Partners
* As of September 30, 2021
Comments from Yohei Kiguchi, Chairman, Representative Director, and CEO of ENECHANGE Ltd.
Thanks to the global trend toward decarbonization, the decarbonization tech sector in the U.S. and Europe has seen the emergence of many successful cases in areas such as storage batteries, demand-side management, and electric vehicles. Since the beginning of this year, there have actually been several decarbonization tech ventures listed one after another in the U.S. and Europe, representing a corporate value of over 100 billion yen. Through investing in leading overseas decarbonization tech ventures, we hope to acquire exclusive or preferential business rights and business know-how in Japan, which will not only promote the growth of our business but also lead the decarbonization tech field toward the attainment of a decarbonized society in Japan.
About ENECHANGE Ltd.
ENECHANGE is an energy technology company that promotes a carbon-free society through digital technology with the mission of CHANGING ENERGY FOR A BETTER WORLD. We offer services based on data utilization in the field of the 4 Ds of Energy: Deregulation, Digitalization, Decarbonization, and Decentralization. Our company’s roots come from an energy data lab at the University of Cambridge, UK, a country where liberalization is well advanced. ENECHANGE has a British subsidiary, SMAP Energy Limited, as well as a global network and analytical technology for energy data.
This press release does not constitute an offer by ENECHANGE Ltd., Nihon Unisys, Ltd., or Toshiba Energy Systems & Solutions Corporation to provide investment management services or solicit specific investment products. In addition, ENECHANGE Ltd., Nihon Unisys, Inc., and Toshiba Energy Systems & Solutions Corporation do not intend to solicit the above-mentioned funds, etc., through this press release.