BY Richard Summerfield
Eneos Holdings Inc has agreed to acquire Japan Renewable Energy (JRE) from Goldman Sachs and Singaporean sovereign wealth fund GIC in a deal worth around $1.8bn. The deal is expected to complete in late January 2022.
Founded in 2012, JRE develops and builds renewable energy assets and has 419 MW of solar, onshore wind and biomass capacity in operation, with a further 410 MW currently under construction.
The deal would mark the first major purchase of a renewables company by a top Japanese oil company, as Eneos looks to shift away from fossil fuels. Eneos aims to become a leading renewable-energy company in Japan, with hopes to achieve net-zero carbon emissions by 2040.
Currently, Eneos controls half the market for gasoline and other fuels in Japan, but has seen its customer base shrink in recent years due to a declining population and shifting consumer opinion. JRE has also been actively engaged in developing offshore wind, including monitoring wind conditions and developing construction plans, which it intended to expand further to become a major source of renewable energy in the future.
“We are proud to have led the creation of JRE and built the company into one of the leading renewable energy producers in Japan,” said Philippe Camu, global co-head of the infrastructure business within Goldman Sachs Asset Management. “We thank JRE’s management team and employees for their amazing performance and achievements and wish them continued success.”
“JRE is now a leading renewable energy company in the country and GIC is pleased to have played a part in that growth,” said Ang Eng Seng, CIO of infrastructure at GIC. “We believe the company will continue to grow under the new ownership.”
“As the world moves toward a decarbonized and circular society, this acquisition will mark a key turning point to fundamentally transform our business structure,” said Keitaro Inoue, senior vice president at Eneos. He added that the price tag is “appropriate” given JRE’s asset size and ability to develop a wide range of renewables including solar, wind and biomass, and noted that the deal buys Eneos time to boost its renewable assets portfolio.
Eneos’ total renewable power-generation capacity in operation and under construction, both domestically and overseas, is expected to be approximately 1.2 million kW following completion of the deal.
News: Refiner Eneos to buy Japan Renewable Energy for $1.8 billion