Monthly Report

Sumitomo Mitsui Trust Bank joins forces with Osaka Gas on 8.3B yen renewable investment fund

October 4, 2024
Mitsui Sumitomo Trust Bank
SuMi TRUST Renewable Energy Brown No. 2 will mainly invest in FIT/FIP solar power plants. (Image: Mitsui Fudosan)

Sumitomo Mitsui Trust Bank and Osaka Gas established “SuMi TRUST Renewable Energy Brown No. 2,” with approximately 8.3 billion yen provided by domestic pension funds, the companies announced on October 3, 2024.

While the renewable energy fund primarily plans to invest in solar power plants subsidized by the feed-in-tariff (FIT) and feed-in-premium (FIP) schemes, it will also include non-FIT/non-FIP solar power plants and storage facilities co-located with such assets.

Osaka Gas will be involved in the selection of assets for the fund to invest in, as well as in asset management. The company, which is also a power retailer, will also aim to purchase power generated from the fund’s non-FIT assets. At the end of the fund’s term, Osaka Gas will acquire its renewable assets to “shorten the investment period and realize a product design that fits the investment needs of domestic pension funds.”

The fund follows Sumitomo Mitsui Trust Bank’s SuMi TRUST Renewable Energy Brown No. 1, which was launched in April 2018 with the aim of managing 15 billion yen worth of assets.

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