Announcing the establishment of the Decarbonized Tech Fund

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Japan Energy Fund is proud to announce the establishment of the Decarbonized Tech Fund (hereinafter referred to as “the Fund”), which specializes in investing in overseas energy venture companies. Participants include our affiliated company, ENECHANGE Ltd. 

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.

Background of fund 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 ENECHANGE, 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 NameJapan Energy Capital 2 L.P.

Commonly known as Decarbonized Tech Fund

Date of EstablishmentSeptember 30, 2021
Investment MethodCapital call method
Investment targetOverseas energy ventures in the decarbonization field
Fund Size50 million USD (objective)
Operation PeriodUntil September 2031
Unlimited Liability PartnerJapan Energy Capital G.K.
Limited Liability Partners

* As of September 30, 2021

  • Nihon Unisys, Ltd.
  • Toshiba Energy Systems & Solutions Corporation

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