MUFG Bank announces its entry as an investor in Japan Hydrogen Fund

MUFG Bank, Ltd. (“MUFG Bank”), the core banking subsidiary of Mitsubishi UFJ Financial Group, Inc. (“MUFG”), announced that it has signed an agreement to invest in the Japan Hydrogen Fund (the “Fund”), a fund focusing on investments in hydrogen, as a major LP investor.

The Japan Hydrogen Association (“JH2A”), a general incorporated association established to promote the use of hydrogen in society, led the creation of the Fund in collaboration with Advantage Partners Co., Ltd. (“Advantage Partners”), who was selected as the fund manager. To address climate change and realize a sustainable society, the Fund will invest in hydrogen production, storage, transportation, and utilization facilities, as well as companies providing technology and services for such infrastructure facilities worldwide.

Through collaboration with Japan’s Ministry of Economy, Trade and Industry and the global public and private sectors, the Fund aims to accelerate the use of hydrogen in society and scale its supply chain. JH2A was established in December 2020 as a cross-industry organization to tackle the global challenge of climate change and to build a hydrogen supply chain. Its objectives include accelerating demand for hydrogen, reducing production costs through scaling and technological innovation, and providing necessary funds to related businesses and sectors.

MUFG has been a member of JH2A as one of its executive companies since its establishment and has been proactively involved in JH2A activities, including making policy proposals for the advancement of the hydrogen industry. In particular, MUFG utilizes its expertise in investment and financing on a global basis to promote activities for the use of hydrogen in society from a financial perspective through JH2A’s Financial Services Committee (whose vice chairmanship is held by MUFG), which took a leading role in the establishment of the Fund. MUFG defines its purpose as being “committed to empowering a brighter future,” and is working to resolve issues for all stakeholders, including its clients, to achieve a sustainable environment and society.

Hydrogen is expected to play an important role in the energy transition in Japan and globally, and MUFG is strongly committed to contributing to the sector’s development, utilizing its expertise as one of the world’s top project finance banks. MUFG will continue to promote initiatives for developing a hydrogen society while providing direct funding to the hydrogen sector as a major investor in the Fund.