Sojitz’s Energy Solutions Business in the U.S. and Australia:
Expanding Business and Strengthening Earnings through Regional Energy Solutions

Electricity is a cornerstone of modern life. Sojitz’s power infrastructure business has focused on construction contracts for various power-related infrastructures as well as on the investment and operation of power plants. In recent years, Sojitz has enhanced its functions and broadened its customer base to pursue business expansion and increase earnings through investment in two U.S.-based energy companies—McClure Company (integrated mechanical construction, engineering, maintenance and energy services) and Freestate Electric, LLC (general electrical construction and maintenance services)—in addition to two mechanical services contractors who are both major HVAC (Heating, Ventilation and Air Conditioning) contractors in Australia. This feature introduces Sojitz’s energy solutions business in the U.S. and Australia.

Energy is indispensable for enriching people’s lives in the course of economic development in countries and regions around the world. Sojitz has engaged in the global power infrastructure business for many years in various countries and regions. Historically, Sojitz partnered with Japanese and Korean manufacturers and engineering companies for the engineering, procurement and construction (EPC) business of power plants and substations in Southeast Asia. In the 2000s, competition began to intensify in the EPC market, and Sojitz shifted its focus to the Independent Power Producer (IPP) business involving investment and operation of power plants. However, due to similar escalating competition in the IPP business primarily in Southeast Asia and the Middle East, Sojitz began to explore the many business opportunities forecast in the U.S. energy market, including power generation, and the company made its first investment in a U.S. power plant in 2017.

Energy demand has continued to increase alongside society’s need to reduce CO₂ emissions and implement measures to counteract global warming. The U.S. is the second highest global emitter of CO₂, and the country is faced with the challenge of implementing greater energy conservation measures to reduce CO₂ emissions. Based on this market environment, Sojitz focused its attention on energy conservation services with an investment in Pennsylvania-based McClure in 2021 and entered the energy solutions business.

Energy service companies (ESCOs) not only provide a broad range of energy solutions including design and implementation of energy saving projects to improve energy efficiency, but also reduce energy and maintenance costs for customers and proposes energy-saving solutions, which includes replacement and repair of air conditioning and lighting systems. Founded in 1953, McClure’s business is centered in Pennsylvania. The company delivers advanced technology and energy solutions through its energy-efficient equipment and air conditioning systems, holding the leading market share as an energy solutions provider for schools and hospitals in Pennsylvania.

Sojitz’s energy solutions business is greatly distinguished by its partnership with McClure. Sojitz and McClure merge their respective expertise and established networks to jointly drive business forward. Sojitz respects McClure’s leadership team and employees while offering new service proposals related to solar power—a business field in which Sojitz possesses extensive knowledge and proven track record—to provide McClure with added value and to enhance the company’s corporate value further.

Sojitz earned McClure’s trust by immersing into McClure’s culture and respecting the company’s practices, fostering a genuine partnership for expanding the business together that goes beyond the typical major shareholder and subsidiary relationship. McClure’s employees now engage directly with Sojitz team members for various discussions, adopting a partnered approach. McClure has incorporated solar power into its service offerings, leading to an increase in projects commissioned by schools and other public institutions. Since Sojitz’s first investment in 2021, McClure has more than doubled its sales, profit, and staff numbers within three years.

Left:
McClure served as Design Assist for all mechanical and plumbing systems in the construction of Lancaster Medical Center in Pennsylvania completed in 2022
Right:
A school in Pennsylvania that installed solar power systems by McClure

In 2024, Sojitz invested in Freestate Electric, a Maryland-based company that provides electrical installation and maintenance services across a wide range of sectors, including educational institutions, data centers, hospitals, and public facilities in the Washington Metropolitan Area, which encompasses Washington D.C. In the U.S., there is growing demand for electrical installation and maintenance services driven by the need to renew and upgrade associated with aging infrastructures and efforts to promote decarbonization. This demand is particularly pronounced in the regions where Freestate operates, fueled by a surge in new data center construction.

In the MEP (Mechanical, Electrical, and Plumbing) sector, which is essential to the infrastructure industry, McClure had in-house mechanical and plumbing capabilities but outsourced electrical work. By integrating Freestate’s electrical expertise, Sojitz Group can now offer comprehensive MEP services. Most importantly, the two companies share similar company cultures and a mission to provide services that support the infrastructure industry. These shared values were a decisive factor in Sojitz’s final decision to pursue a joint energy solutions business.

Building on its experience in the energy solutions business in the U.S., Sojitz invested in Ellis Air Group Pty Ltd. in 2023. Ellis Air specializes in HVAC design, installation, and energy-conservation services, primarily in the states of Victoria and Queensland in Australia. Furthermore, in 2025, Sojitz acquired a 70% stake in Climatech Group Holdings Pty Ltd., a company based in New South Wales through Ellis Air. By investing in Ellis Air, which has a strong presence in Victoria and Queensland, and in Climatech, which is strong in New South Wales, Sojitz has established a network that covers the three eastern states where approximately 80% of the country’s population is concentrated. The combined sales of both companies reach approximately 45 billion yen, making them the market leader in Australia’s HVAC sector. *¹

*1: Sojitz study

The Star Brisbane, an integrated resort facility currently under construction in the Queen’s Wharf district of Brisbane, Queensland, is scheduled for completion by the end of 2026. Ellis Air is playing a major role in the HVAC design and installation for this project, incorporating energy-efficient air conditioning systems.

Australia has the second highest annual per capita CO₂ emissions among G20 countries and the highest annual per capita energy consumption rates in the APAC region. Air conditioning accounts for approximately 50% of peak electricity consumption in Australia, which makes energy efficiency in air conditioning systems highly effective for reducing CO₂ emissions. With Ellis Air and Climatech as part of the Sojitz Group, Sojitz will enhance its capabilities to provide energy solutions that meet a wide range of customer needs in Australia.

Flexibility is Sojitz’s greatest strength in the energy solutions business. By leveraging its extensive industry knowledge gained from years of experience in power infrastructure construction and IPP projects, Sojitz is well-equipped to explore new business fields together with Group companies as equal partners. Sojitz respects the established processes and principles of its Group companies while fostering collaboration. Rather than taking the reins, Sojitz aims to expand business in tandem with the management teams of our Group companies, ultimately striving for these Group companies to achieve autonomous management.

Sojitz will leverage its business experience gained in the U.S. and Australia to expand into new markets and select partners to jointly develop optimal businesses that provide tailored energy solutions to meet regional needs.