Tokyo, Sept. 2 (Jiji Press)–MUFG Bank and eight other Japanese companies have announced the establishment of a new investment company to promote the use of renewable energy.
Under the framework, a 30-billion-yen fund will be launched by the end of this year to provide up to 200 billion yen for solar and wind power generation projects through investment and loans.
Electricity generated in the projects will be used by these companies as well as other stakeholders. They have been seeking a stable supply of renewable energy at a time when many businesses are trying to achieve carbon neutrality by 2050.
The eight other companies that took part in the establishment of Z Energy Co. are Osaka Gas Co. <9532>, NTT Anode Energy Corp., Mitsubishi Heavy Industries Ltd. <7011>, Tokio Marine & Nichido Fire Insurance Co., Japan Post Bank <7182>, Joyo Bank, Hyakugo Bank <8368> and Mitsubishi Research Institute Inc. <3636>.
The fund’s investment destination will gradually be expanded to cover hydrogen power generation and distributed energy sources, and its size will hopefully be enlarged to about 300 billion yen in 10 years.
“The government, private companies and financial institutions need to work together to make renewable energy the mainstay power source,” MUFG Bank President Junichi Hanzawa told a press conference.