November 8, 2021
Others
Decided to invest in North America's "Azimuth V Energy Evolution Fund" We will contribute to reducing CO2 emissions throughout the value chain through early commercialization of energy transition-related businesses
Idemitsu Kosan Co.,Ltd. (Headquarters: Chiyoda-ku, Tokyo, President: Shunichi Kito, hereinafter referred to as the "Company") is an energy company that utilizes technology established by Azimuth Capital Management (Headquarters: Calgary, Alberta, Canada, hereinafter referred to as "Azimuth"). We have decided to invest US$25 million in a new fund "Azimuth V Energy Evolution Fund" specializing in transition-related businesses. Through this investment, we will develop promising businesses that will help realize a sustainable society, such as hydrogen production from municipal waste and natural gas, low-carbon fuel production, waste plastic recycling, more efficient geothermal power generation, and lithium recovery from hot water. Through early commercialization, we aim to reduce CO2 emissions throughout the value chain. In addition, with Azimuth's business model, market insight, and access to startups, we will pursue synergies between the technologies owned by our group and the ideas of startups, create new businesses needed for the next generation, and improve our business portfolio. We aim for change.
The fund, founded by Azimuth, is a North American-based fund with up to US$1 billion focused on late-stage startups that are realizing energy transitions aimed at reducing environmental impact. By combining existing energy assets and commercially available technologies, we aim to achieve higher profitability and carbon reductions than typical renewable energy projects.
In the “Review of Medium-term Management Plan” announced in May 2021, our company set “Your Reliable Partner for a Brighter Future” as Vision for 2030. By taking on Responsibility to protect the environment and lifestyles, and making Energy/material transition to a carbon neutral/circular society, we will shift the earnings base of our business portfolio from fossil fuels and Basic Chemicals businesses to next-generation fuels and materials. We aim to transform into next-generation materials and circular business. In addition, we will work to reduce CO2 emissions not only from our own operations, but also across the entire value chain. Our company has started networking with various startup companies and exploring new projects based at Idemitsu Americas Holdings (President and CEO: Motohiro Suzuki, hereinafter "IAH"), a wholly owned subsidiary established in San Jose, USA in 2020. I am. In order to achieve carbon neutrality and next-generation energy, we recognize that it is essential to discover startups just before the commercialization stage and consider and build business models. We have decided to invest in the fund.
IAH/Azimuth officials
<Comment from IAH President and CEO Motohiro Suzuki>
For Idemitsu, this investment will provide a major driving force toward transforming its business structure to a sustainable one, and will greatly increase the value of Idemitsu's business assets for the fund and investee companies. Based on the relationship of trust that we have built with Azimuth over a long period of time, we look forward to working together as the best partner. Through the creation of new businesses, we hope to contribute to decarbonization and energy transition in Japan, and to continue to grow over the long term. Ultimately, we will aim to solve social issues with a view to expanding to the Asian region.
<Comment from Azimuth co-founder and managing partner Jeff van Steenbergen>
We are honored to partner with Idemitsu, a respected energy industry leader not only in Japan but around the world. By incorporating the degree of decarbonization as one of the success indicators, this fund is clearly differentiated from other groups in the market, and as Azimuth, we will do our best to support Idemitsu's business transformation into a new era. I will continue to do so.
Going forward, we will continue to build a business portfolio that can respond flexibly and robustly to changes in the environment and create new value through investment and collaboration with various partners.
[Reference] Azimuth Capital Management website
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Idemitsu Kosan Co.,Ltd. Public Relations Department Public Relations Division