Actis launches $500m renewables business in Japan and makes first acquisition

Actis, a global investor in sustainable infrastructure, has launched Nozomi Energy, a new US$500 million Japan-focused renewables platform. Nozomi will target 1.1GW of onshore wind and solar power generation by 2027. The investment is made from Actis’ fifth and latest energy infrastructure fund, which represents $6 billion of investable capital.

Actis has recruited a dedicated management team to run Nozomi and deliver its buy and build strategy. The team will be led by Jose Antonio Millan Ruano, an experienced energy professional with around 20 years of renewables experience (including over 11 years in Japan), most recently as President & CEO of Hinode Energy, and prior to that at Univergy Solar.

Actis has signed its first investment and seed asset for Nozomi, acquiring 100% of Hergo Japan Energy Corporation from Infrastrutture S.p.A., a leading internationally active renewable energy developer and IPP led by Pier Francesco Rimbotti, subject to customary closing conditions.

Hergo Japan Energy has a portfolio of operating and development stage solar and onshore wind projects totaling around 230MW, plus a significant pipeline of early-stage projects. Hergo Japan Energy’s CEO, Minoru Saito, will remain with the new platform, as Vice-Chairman and Head of Wind at Nozomi.

Actis’ deployment of renewables technologies in Japan and North Asia will be a key enabler in the region’s energy transition, supporting a shift to a low-carbon economy and meeting Japan’s national climate targets. Drawing on Actis’ experience as builders and operators of sustainable, scaled energy infrastructure businesses, Nozomi will focus on delivering onshore wind and solar energy generation to support Japan’s commitment to reduce greenhouse gas emissions by 46% from 2013 levels, by 2030.

Actis will use its proprietary measurement framework, The Actis Impact Score™, to define and measure positive outcomes at Nozomi, while using the Actis’ Transition Tool to identify decarbonisation opportunities. There will also be a focus on creating new local employment and supporting community investment to ensure a strong positive social impact during the life of the investment.

In March 2022, Actis announced it had extended its footprint in Asia with a new office in Japan and key senior hires, Jun Ohashi and Tareq Sirhan.

Jun Ohashi, Head of Actis Japan, said: “Japan has challenging but critical emission reduction targets and Nozomi will play an important role in enabling the country to achieve them. Through this well-funded new platform, we want to create another industry leader in renewable power. It should have a positive impact both in terms of decarbonisation and by creating local jobs and supporting communities, while still making superior returns for our global investors."

Tareq Sirhan, Head of Energy for North Asia said: “At Actis we are more than financial investors. Around the world, we buy, build and operate sustainable and renewable energy projects in support of the Energy Transition and we intend to bring that long-term approach to North Asia.”

Jose Antonio Millan Ruano, CEO of Nozomi, added: “This is a fantastic opportunity to build and operate a scaled renewable energy platform that can significantly advance Japan’s net zero ambitions. We have onboarded a highly talented team and made an exciting first investment with more to come.”

Actis’ energy infrastructure team invests on a global scale in buy-and-build power generation and distribution businesses, supporting the world’s low carbon energy transition and accelerating the journey to net zero. Actis has invested in over 70 renewable energy projects to date, with approximately 12GW of renewable energy capacity globally