CDPQ backs Japan’s Shizen Energy with $135m investment

• The investment from CDPQ will enable Shizen to expand in Japan and in key international markets
• Shizen will accelerate its on-site and off-site power purchase agreements in southeast Asia and Brazil
• The company will also continue to develop a variety of renewable energy sours including solar, wind, hydroelectric and biomass power

Caisse de dépôt et placement du Québec has announced it has made a $135 million investment in Shizen Energy, a Japanese renewable energy company.

The two parties have also agreed to a co-investment framework which could see CDPQ invest up to $339 million. The combined investment will back Shizen’s expansion in Japan and in key international markets.

Shizen, headquartered in Fukuoka City, will continue to develop a variety of renewable energy sources in Japan, including ground and roof-mounted solar power, agri-solar power, onshore and offshore wind power, small-scale hydroelectric power and biomass power. The company will also accelerate it’s on-site and off-site power purchase agreements in southeast Asia and Brazil.

To date this year, the company has secured more than $502 million in financing.

“This transaction in Japan is an important milestone in the deployment of CDPQ’s long-term Asia-Pacific infrastructure strategy,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ. “Japan has a crucial role to play in the decarbonation of Asia, and as an investor with deep experience in renewable energy, we are delighted to be working with the Shizen team to deliver on their ambitious plan for the energy transition.”

CDPQ, headquartered in Montreal, invests to generate sustainable returns over the long-term on behalf of Quebec public pension and insurance plans. As of December 31, 2021, CDPQ’s net assets totalled C$419.8 billion ($306.2 billion; €318.3 billion).