A group of Japan-based financial and industrial companies, and France-based energy giant TotalEnergies announced the launch of the Japan Hydrogen Fund, dedicated to developing a low-carbon hydrogen value chain.

The new fund is launching with $400 million in commitments at its first close, with initial investors including Toyota Motor Corporation, Iwatani Corporation, Sumitomo Mitsui Banking Corporation, MUFG Bank, Tokyo Century Corporation, Japan Green Investment Corp. for Carbon Neutrality, and the Bank of Fukuoka.

The launch of the new fund follows a commitment by in 2020 Japan to reach carbon neutrality by 2050, and the subsequent release by the government in 2021 of an interim target to reduce greenhouse gas emissions by 46% 2030, and a 2030 energy strategy, which envisions reducing fossil fuels in the energy mix to around 40% from more than 75%.

The new fund aims to support the development of a hydrogen supply chain in Japan and globally, providing hydrogen-related companies and projects with funding, including through collaboration with public and private institutions.

The fund will be managed by Sumitomo Mitsui DS Asset Management (SMDAM), private equity firm Advantage Partners, and the Japan Hydrogen Association (JH2A), with SMDAM providing fund management, sustainable investment and Japan Impact evaluation services, Advantage Partners responsible for investment advisory services and operational support, and JH2A promoting collaboration with its committees, and member companies and organizations.

Helle Kristoffersen, President of Asia and member of the Executive Committee of TotalEnergies, said:

“TotalEnergies is pleased to support an ambitious fund dedicated to developing the hydrogen value chain in Japan and globally, as the only non-Japanese investor at this stage. We are convinced that only a collective effort will enable low-carbon hydrogen solutions to emerge on an industrial scale.”