Acquisition of Shares of Japan Renewable Energy Corporation (Change in Sub-subsidiary)

Source Press Release
Company ENEOS Holdings, Inc. 
Tags Corporate Deals, Deals, Renewable Energy, Power
Date October 11, 2021

ENEOS Holdings, Inc. (“ENEOS Holdings”) today announces that its consolidated subsidiary ENEOS Corporation (President: Ota Katsuyuki; “ENEOS”) has decided to acquire the entire issued shares of Japan Renewable Energy Corporation (“JRE”), indirectly owned by the Infrastructure business within Goldman Sachs Asset Management (“Goldman Sachs”) and an affiliate of  GIC Private Limited (“GIC”) (such acquisition, the “Transaction”). Following the Transaction, JRE will be a wholly-owned subsidiary (sub-subsidiary) of ENEOS Holdings.

ENEOS Group (the “Group”) set out the following envisioned goals in the “Group’s Long-Term Vision to 2040”: “Become one of the most prominent and internationally-competitive energy and materials company groups in Asia,” “Create value by transforming our current business structure,” and “Contribute to the development of a decarbonized, recycling-oriented society.” While maximizing cash flow from its core businesses, including petroleum refining and marketing, the Group is driving strategic investment in growing businesses such as petrochemical business, materials business, next-generation energy supply business and environmentally conscious business.

The Group sets a goal to achieve carbon neutrality in its own CO2 emissions in 2040 to contribute to the development of a decarbonized, recycling-oriented society. As part of initiatives to realize such a society, the Group aims to expand its total renewable power generation capacity to over 1,000,000 kW in Japan and overseas by the end of FY2022, the final year of the 3- year “Second Medium-Term Management Plan,” and further expand the capacity thereafter.

JRE was established in August 2012 by Goldman Sachs with a vision: “to take leadership in creating a prosperous and sustainable society through development of renewable energy.” JRE has been one of the leading renewable energy companies in Japan that engages in renewable power generation business across the full value chain from project development to operation and maintenance of renewable power plants. As of September 2021, approximately 379,000 kW of renewable plants (consisting of solar, onshore wind, and biomass; capacity in accordance with the stake in each project) are in operation and it reaches approximately 708,000 kW when including renewable plants under construction. Furthermore, JRE is actively engaged in offshore wind business development including monitoring wind conditions and developing construction plans, which is expected to expand further to become a major source of the renewable energy in the future.

In ENEOS, the total renewable power generation capacity in operation and under construction, both in domestic and overseas is expected to be approximately 1,220,000 kW (as of September 2021) after the Transaction. ENEOS aims to become a leading renewable energy company in Japan by combining JRE’s development capabilities in the renewable energy business with expertise that ENEOS has accumulated as an energy company.

In the future, ENEOS will establish a system that stably and efficiently supplies CO2-free electricity to customers by combining fluctuating renewable energy power supplies with energy management system (EMS), which optimally controls electricity by utilizing storage battery and electric vehicle (EV). As CO2-free electricity will play a key role in the production of CO2-free hydrogen, this initiative will contribute to the development of a CO2-free hydrogen supply chain, which ENEOS is currently pursuing.

This initiative is consistent with United Nations’ Sustainable Development Goals (SDGs) 7. Affordable and clean energy, 11. Sustainable cities and communities, and 13. Climate action. ENEOS is contributing to the realization of a low-carbon, recyclingoriented society by actively promoting environmentally conscious energy supply, including renewable energy.

The impact of the Transaction on our consolidated financial results ending March 31, 2022 is expected to be minimal.

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