SPARX Group Announces the Establishment of the SPARX Battery Storage Fund

SPARX Group Co., Ltd. (hereinafter "SPARX") has established the "SPARX Battery Storage Fund" (hereinafter "this Fund") as a new initiative to achieve carbon neutrality in Japan. The fund will primarily invest in merchant (market operation) type battery storage businesses aiming to generate revenue through market operations. Battery storage facilities are large-scale energy storage systems that connect directly to the power grid, charging during surplus and discharging during shortages, while also functioning as a balancing power to suppress fluctuations in power supply output. They are attracting attention as crucial next-generation infrastructure that balances decarbonization and a stable supply by solving issues such as "grid instability" and "output curtailment" accompanying the expansion of renewable energy introduction. In recent years, the introduction of battery storage has been expanding rapidly worldwide, and demand is increasing domestically as well. In February 2024, our company established the "SPARX Green Battery Storage Fund" targeting battery storage utilizing long-term decarbonized power supply auctions. However, in response to recent volatility in the electricity market and the growing importance of flexible balancing power, we have newly launched this Fund. The battery storage businesses targeted for investment by this Fund will not rely on specific long-term contracts. Instead, they aim to maximize revenue obtained through trading in the balancing market, wholesale electricity market, and capacity market by flexibly charging and discharging electricity according to supply and demand conditions. SPARX acts as the fund manager (GP), and its subsidiary SPARX Asset Management Co., Ltd. acts as the investment agent. We have received investments from institutional investors and operating companies (LP) and signed a partnership agreement today for a total of 6.1 billion yen. We plan to solicit investments until the end of July 2026, aiming for a fund size of around 10 billion yen. Furthermore, our subsidiary SPARX Green Energy & Technology Co., Ltd. (hereinafter "SGET") has a track record of developing and operating renewable energy businesses at 349 locations nationwide with a total of 727MW, promoting introduction centered on solar and wind power. Additionally, we are working on new areas, developing battery storage businesses at 5 locations nationwide totaling 230MW, and a manufacturing plant that produces 100 tons of green hydrogen annually at 1 location. Our group will continue to contribute to the realization of a decarbonized society and the development of a sustainable society through continuous investment in renewable energy businesses, battery storage businesses, and green hydrogen manufacturing businesses. Fund Name: SPARX Battery Storage Investment Limited Partnership "SPARX Battery Storage Fund" Investment Targets: Equity interests, other investment securities, etc. targeting domestic battery storage businesses Investors: General Partner: SPARX Group Co., Ltd. Limited Partners: Resona Bank, Limited, Hulic Co., Ltd., The Joyo Bank, Ltd., etc. Investment Agent: SPARX Asset Management Co., Ltd.