Decarbonization Support Organization Decides to Invest in SPARX Sapporo-Hokkaido GX Investment Limited Partnership (SPARX Sapporo-Hokkaido GX Fund)

Japan Green Investment Corp. for Carbon Neutrality (JICN) (President & CEO: Yoshihiko Tayoshi) has decided to invest in the SPARX Sapporo-Hokkaido GX Investment Limited Partnership (SPARX Sapporo-Hokkaido GX Fund, hereinafter referred to as "the Fund"), established by SPARX Group Co., Ltd. (Headquarters: Minato-ku, Tokyo; President & CEO: Shuhei Abe).

The Fund was planned to promote GX in Hokkaido and is led by financial institutions participating in Team Sapporo-Hokkaido (TSH)※, a consortium of industry, government, academia, and finance organized to promote GX in Hokkaido. JICN has also participated in TSH from the preparation stage and has been involved in the conceptualization of the Fund.

Going forward, JICN will support the Fund's activities by sharing its know-how and expertise, and will monitor GHG reduction efforts through the business.

※A consortium comprising 21 organizations, established on June 23, 2023, aiming to maximize Hokkaido's unparalleled potential for renewable energy, foster a cluster of GX industries, strengthen supporting financial functions, and realize Asia's and the world's "financial center" for GX funds, human resources, and information. https://tsh-gx.jp/

1. Overview of the Fund

Fund Name: SPARX Sapporo-Hokkaido GX Investment Limited Partnership

(SPARX Sapporo-Hokkaido GX Fund)

Target Fund Size: 10 billion yen

JICN Investment Amount: 500 million yen

Operating Period: 10 years

Operator (GP): SPARX Group Co., Ltd.

Investment Target: Primarily pre-operational GX projects in Hokkaido related to the eight priority areas of TSH and renewable energy, including:

(1) Offshore Wind (2) Next-Generation Semiconductors (3) Data Centers (4) Hydrogen (5) SAF

(6) Batteries (Storage Facilities) (7) Submarine DC Grids (8) Electric and Hydrogen Vessels

【SPARX Group Overview】

Company Name: SPARX Group Co., Ltd.

https://www.sparx.jp/

Headquarters: Minato-ku, Tokyo

Representative: President & CEO Shuhei Abe

Establishment Date: July 1989

Company Profile: Investment management, investment trust management, investment advisory, securities business, etc.

2. Policy Significance of the Support Decision

(1) From the perspective of greenhouse gas emission reduction/absorption, etc.

• Hokkaido is a promising region for renewable energy generation, including wind power, with high potential for introducing renewable energy. By investing through this Fund in renewable energy generation projects and GX infrastructure projects/facilities such as storage facilities and data centers, it is expected to contribute to CO2 emission reductions by generating additional renewable energy.

(2) From the perspective of a virtuous cycle of economy and environment

• This Fund was planned with decarbonization as one of the region's growth strategies, led by Hokkaido's regional financial and administrative institutions. Through the participation of businesses inside and outside the prefecture in this Fund, it aims to solve regional issues and promote regional revitalization by maximizing the use of regional resources such as renewable energy...