Actis’ Japanese Renewable Firm Gets $500 Million to Develop 1.1 GW Capacity
The company acquired Hergo Japan Energy Corporation
Infrastructure investor Actis has launched Nozomi Energy, a new renewable energy platform, targeting 1.1 GW of onshore wind and solar power generation by 2027 in Japan with an investment of $500 million.
The financing would come from Actis’ fifth and latest energy infrastructure fund, representing $6 billion of investable capital. Actis has investments in 12 GW of renewable energy capacity globally.
Nozomi has signed its first investment and seed asset by acquiring 100% of Hergo Japan Energy Corporation from Infrastrutture, an international renewable energy developer.
Hergo Japan Energy has a portfolio of operating and development-stage solar and onshore wind projects totaling around 230 MW, plus a significant pipeline of early-stage projects.
Hergo’s CEO, Minoru Saito, will remain with the new platform as Vice-Chairman and Head of Wind at Nozomi.
“Japan has challenging but critical emission reduction targets, and Nozomi will play an important role in enabling the country to achieve them. We want to create another industry leader in renewable power through this well-funded new platform. It should positively impact decarbonization by creating local jobs and supporting communities while still making superior returns for our global investors,” said Jun Ohashi, Head of Actis Japan.
Nozomi will be led by Jose Antonio Millan Ruano, an experienced energy professional with around 20 years of renewables experience, most recently as President & CEO of Hinode Energy.
It will focus on delivering onshore wind and solar energy generation to support Japan’s commitment to reduce greenhouse gas emissions by 46% from 2013 levels by 2030.
There will also be a focus on creating new local employment and supporting community investment to ensure a strong positive social impact during the life of the investment.
Last November, Actis-backed BluPine Energy acquired 404 MW of solar assets from Kolkata-based mining company Atha Group. The company’s operational solar portfolio is spread across India. Actis said that the acquisition would enable BluPine, which was formed early last year, to support India’s energy transition by targeting 4 GW of portfolio capacity over the next 4-5 years.
A total of 27 solar mergers and acquisitions were recorded in the first quarter of 2023 compared to 38 quarter-over-quarter (QoQ) and 29 transactions year-over-year, according to Q1 2023 Solar Funding and M&A Report. Almost 12 GW of solar projects were acquired in Q1 2023 compared to 14 GW QoQ.