Establishment of Asset Management Company Focused on Corporate PPA Projects

Today, PHOTON CAPITAL LLC (PHOTON) and Japex Green Energy, Co., Ltd. (JGE), a 100% subsidiary of Japan Petroleum Exploration Co., Ltd. (JAPEX), jointly established PJ Asset Management Co., Ltd. (PJAM), an asset management company for managing and operating to-be-developed new solar power generation projects, in which PHOTON Sustainable PV Investment Limited Partnership^(*1) (hereinafter referred to as the "PHOTON PV Fund" or the "Fund") will make investments. PHOTON PV Fund is an investment fund targeting solar power generation projects in Japan and was established in September 2021 by four companies including PHOTON and JAPEX. 

PHOTON PV Fund invests, in view of the tapering Feed-in Tariff (FIT) period, mainly in non-FIT and corporate PPA solar power generation projects that are under development or in operation in Japan. The fund term is 20 years: an investment period of 5 years from establishment and an operational period of 15 years thereafter. Currently, with the maximum fund amount set to 10 billion yen, PHOTON, the general partner (GP), is selecting projects and making investments.

Preparation for the establishment of PJAM had been promoted since the launch of PHOTON PV Fund with the aim of accumulating the knowledge necessary for future renewable energy business and further expanding business. PJAM will accelerate the launch of new development projects linked to this fund and contribute to stably managing progress. In addition, it will use a system that utilizes Artificial Intelligence to pursue efficient management of distributed power generation stations and billing management to accumulate and utilize the knowledge necessary for future renewable energy business, including Feed-in-Premium (FIP) and corporate PPAs^(*2).

PJAM is 90% owned by PHOTON and 10% owned by JGE, and both companies dispatch personnel to carry out its business operations. For other basic information about PJAM and an overview of PHOTON PV Fund, please refer to the Attachment.

PJAM will cooperate with PHOTON PV Fund and take advantage of the knowledge and know-how of related companies to achieve further proliferation of renewable energy in Japan, thereby aiming to contribute to the creation of a carbon-neutral society by 2050.