Idemitsu to invest USD25 million in new Azimuth Capital fund specializing in the energy transition

  • Investment in Azimuth V Energy Evolution Fund will seek to promote collaboration with private energy companies that promote the development and use of clean energy.
  • The focus of the Fund will be on technology-enhanced energy investment opportunities that materially lower carbon emissions in the production of energy and fuels.
  • Through the investment, Idemitsu will also accelerate the creation of next-generation businesses and transform its business portfolio.

Idemitsu Kosan Co., Ltd., one of Japan’s leading producers and suppliers of energy, (headquarters: Tokyo, Japan; hereinafter “Idemitsu”) will invest USD25 million in Azimuth V Energy Evolution Fund, a new fund established by Azimuth Capital Management (offices in Alberta, Calgary, Canada; hereinafter “Azimuth”) specializing in technology-enabled energy transition investment opportunities. Azimuth is a North American private equity firm with 20 years of experience investing in energy transition, infrastructure, E&P, and technology. Over the past 13 years, backed by a carefully crafted team of investment managers, engineers, entrepreneurs, project developers and scientists, Azimuth has developed a unique approach to energy transition investments. Azimuth V Energy Evolution Fund, based in North America, will invest in technology-enhanced sustainable energy assets to generate private equity level returns, measurable CO2 mitigation and scaled capacity for its co-investment partners.

  • Idemitsu Logo
  • Azimuth Logo

Through this investment, Idemitsu will seek to collaborate with portfolio companies to quickly commercialize ideas that can help realize a sustainable society, such as low-emission hydrogen production, low-carbon fuel production, waste plastic recycling, optimized baseload power generation, or sustainable lithium production, while also reducing CO2 emissions throughout its value chain. Using Azimuth's experienced team, unique market insights and access to leading opportunities, Idemitsu will also explore synergies between its proprietary technologies and the Fund portfolio companies to create next-generation businesses and transform its business portfolio.
Idemitsu will invest in the Fund through its wholly owned subsidiary Idemitsu Americas Holdings Corporation (headquarters: San Jose, California; hereinafter "IAH"), which upon its establishment in 2020 began networking with a wide range of organizations to explore new projects. Idemitsu found Azimuth to be the most suitable partner in North America to assist the group’s carbon neutrality efforts and development of next-generation energy sources. For this investment decision, Idemitsu regarded it as essential to find opportunities just before the commercialization stage, as this would enable the company to play an integral part in considering and building their business models.

IAH and Azimuth Team in Silicon Valley

IAH and Azimuth Team in Silicon Valley

Motohiro Suzuki, President and CEO of IAH, said, "This investment will be a major driving force in the Idemitsu Group's transition to a sustainable business structure. Also, the Fund and the companies it invests in will be able to significantly increase their value by leveraging our business assets. We look forward to working with Azimuth as partners enjoying a long-standing relationship of trust. Through the creation of new businesses, we aim to contribute to decarbonization and energy conversion in Japan, and to resolve social issues with a view to expanding into the Asian region over the long term.”

Jeff van Steenbergen, Co-Founder and Managing Partner of Azimuth, said, “We are honoured by this opportunity to partner with Idemitsu, a respected energy industry leader not only in Japan, but around the world. With real carbon mitigation benchmarks by which the success will be judged, the Azimuth V Energy Evolution Fund is positively differentiated from other groups flooding the market. We very much look forward to working closely with Idemitsu to support the transformation of its business into a new era.”

Idemitsu’s corporate vision for 2030, “Your Reliable Partner for a Brighter Future,” was announced in the medium-term management plan revision in May, and emphasizes the group’s "responsibility to protect the environment and lifestyles." As the energy and material transition progresses toward carbon-neutral and recycling-oriented societies, we aim to transform our business portfolio, which is based on fossil fuel and basic chemicals businesses, into one focused on next-generation fuels and materials, and circular businesses. We will also work to reduce CO2 emissions from in-house operations as well as from the entire value chain. Idemitsu will continue to strive toward a business portfolio that is resilient to environmental changes and create new value through investments in collaboration with various partners.

About Idemitsu Kosan Co., Ltd.
Idemitsu Kosan Co., Ltd. is one of Japan’s leading producers and suppliers of energy. Our global operations, spanning 67 business bases across 20 countries and regions outside of Japan, encompass fuel oils, lubricants, asphalt, oil and gas development, renewable energy, coal and low-carbon solutions, petrochemicals, electronic materials, and agri-bio products. Founded in 1911, Idemitsu Group has for over a century provided the stable energy supply that is indispensable for industry and daily life. Under our corporate vision for 2030, titled “Your Reliable Partner for a Brighter Future”, we will tackle social challenges and work toward net-zero carbon emissions (Scope1+2) by 2050, while remaining focused on our social mission: To provide a stable supply of energy, where and when people need it.

For more information about Idemitsu Group, see:
https://www.idemitsu.com/en/index.html

For information on our corporate vision for 2030, see:
https://www.idemitsu.com/en/company/policy/index.html

About Azimuth Capital Management
Azimuth Capital Management is a private equity firm with almost 20 years of experience investing in energy transition, infrastructure, E&P and technology. To date, C$3.4 billion has been invested into the development of 35 energy companies across four funds, including Azimuth’s co-investment program. Azimuth is a team of operators and engineers, with broad experience in large energy development, operations and investing. The firm has offices in the San Francisco Bay Area, California and Calgary, Alberta.

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Public Relations Department Public Relations Section, Idemitsu Kosan Co.,Ltd.

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