Sojitz Acquires Electricity Retail Business in Australia - Accelerating Development of the Energy Solutions Business through Synergy
with Ellis Air and Climatech -

Sojitz Corporation (“Sojitz”) has acquired a stake in Australia’s Next Green Group Pty Ltd (“NGG”), an energy retailer that also develops solar systems, battery storage, and other EPC services for energy projects. The company will become a consolidated subsidiary of Sojitz following the acquisition of issued shares. Through this acquisition, Sojitz will build an integrated energy solutions business for air conditioning system installation and electricity supply that includes energy management and leverages synergy with Australia’s Ellis Air —a consolidated Sojitz subsidiary and air conditioning and mechanical services company providing energy-efficient design and construction services—and Climatech, which operates under Ellis Air.

Australia has the highest annual per capita consumption of energy in the APAC region. Buildings in Australia are required to meet high standards for environmental performance ratings. As a result, there is growing awareness and demand for energy-saving services. For multi-tenant sites such as shopping centers and high-rise buildings, adoption of energy-efficient air conditioning systems is increasing. In particular, many buildings require centralized HVAC*1 system installation that integrate heat-generating components such as boilers and refrigerators.

In Australia, electricity rates are driven up by high grid costs that account for approximately 45% of electricity costs. High demand therefore exists for cost-reducing through the adoption of Behind-the-Meter (BTM) systems, which include integrated rooftop solar panels and battery storage systems. In addition, BTM services under the PPA model do not require any startup investment costs for installation, and the BTM industry is demonstrating a rapid growth rate exceeding 12% annual growth. *2

NGG provides retail electricity services to small and medium-sized businesses primarily across the Eastern States of Australia, but largely in the states of New South Wales and Victoria. NGG has a track record of installing solar power systems and storage batteries at significant commercial and industrial sites for leading global corporates and including shopping centers, health precincts and retail centers. The company’s strength lies in its ability to build integrated models for power generation, transmission, retail, and energy management. NGG will join Sojitz Group, and the companies will leverage their joint air conditioning equipment and energy-saving businesses to provide services for existing customers. Specifically, NGG will collaborate with Ellis Air Group to provide comprehensive energy solutions for building infrastructure that include the installation and operation of HVAC equipment, and supply of energy. Additionally, Ellis Air Group and NGG will work to accelerate the expansion of BTM services under the PPA model to expand long-term electricity sales and strengthen earnings foundations.

Moving forward, Sojitz will continue to supply clean energy to consumers and provide low-carbon and decarbonization-related solutions and services in order to contribute to the energy transition.

*1: Heating, Ventilation, and Air Conditioning
*2: Sojitz study

[Related Information]