Banpu Next, the energy technology arm of energy conglomerate Banpu Plc, has co-invested in Amp Co, a Japanese renewable energy solution firm, to develop solar and wind farms in Japan.
The company is teaming up with the Asia-Pacific Sustainable & Decarbonisation Infrastructure Equity Fund, sponsored by financial service companies Aravest and SMBC Group, to jointly fund the US$145-million investment.
The investment supports Amp Co's plan to develop solar and wind farms, with power generation capacity of 800 megawatts.
Banpu Next is interested in expanding its business into Japan, a key renewable energy market, said Smittipon Srethapramote, chief executive of Banpu Next.
Amp Co, a subsidiary of renewable developer Amp Energy, is also working on a project to develop solar farms with a capacity of 300MW.
The company aims to increase its total electricity generation capacity to 2 gigawatts within 10 years.
Japan aims to increase its proportion of renewable energy to 36-38% of total fuels used for power generation by 2030.
The Japanese government is focusing on the development of solar and wind farms to support efforts to achieve the net-zero target, a balance between carbon dioxide emissions and absorption, by 2050, said Mr Smittipon.
Rohit Nanda, head of Aravest-SMBC Infrastructure Equity Fund, said the Japanese renewable energy market has achieved impressive growth over the past 10 years.
"We see the potential of the private power purchase agreement and are excited to contribute to lowering the carbon footprint of various corporations in Japan," said Mr Nanda.
Banpu Next views collaboration with local companies like Amp Co as an essential part of its business expansion in target countries.
"We will leverage technological advancement to enhance energy management efficiency as well as increase use of data analysis," said Mr Smittipon.
"Amp Co is a strategic partner who will help accelerate our business growth and diversify our portfolio across various renewable energy assets."
