The world is now facing numerous problems such as global warming, the depletion of fossil fuels, and nuclear power generation. With the rise in environmental awareness, a review of energy composition is being vigorously discussed across the globe, and renewable energy that utilizes the natural power of the nature has been a growing demand as an environmentally friendly energy.
Through our renewable energy, we promote our business while contributing to the environment.
Arrangement
RS Asset Management Co., Ltd. is mainly engaged in arrangement services related to renewable energy projects, such as solar power generation, and is led by experienced and skilled asset managers.
Our goal is to build a scheme that is in line with our corporate philosophy “contributing to a safe and stable power supply”.
We do not conduct any business which falls under financial instruments business or money lending business and none of the businesses above falls under financial instruments business or money lending business.
Fund Structure Development
Investing in renewable energy generation can provide stable returns by utilizing the Feed-in Tariff (FIT) system with electricity suppliers, without having to consider risks such as tenant eviction and liquidity as is the case with real estate investment. Under our scheme, the special purpose company (SPC) outsources the entire process to experienced partner companies, including the selection of potential sites for power generation facilities, construction and maintenance. In this way, the SPC efficiently reduces the initial cost of acquiring power generation assets, while reducing the asset management costs. Furthermore, this SPC business focuses on projects that can be financed by non-recourse loans from financial institutions, with the aim of improving investment returns through the use of leverage.
We are committed to building structures that maximize investment returns. However, as our corporate philosophy is to contribute to a safe and stable power supply, we ensure that the investment structure is not overly aggressive and we make efforts to construct the most appropriate structure based on advices from external lawyers and accountants and after thorough discussions with our investors based on investment simulations.
Business Structure (draft)
Each renewable energy business is basically structured on project finance, and we promote optimization for each project.
Operation Management
We provide transparent reporting of fund management and equipment maintenance by the SPCs. Through this transparent reporting, we are committed to making sure that our investors feel that the funds are making an appropriate contribution to a safe and stable power supply, leading to a hopeful future.
Business Process
With a high level of expertise, wealth of experience, we will work to secure, operationalize and operate and manage projects in a consistent manner.
Investment
We have made silent partnership investments (Tokumei Kumiai investments) in special purpose companies (SPCs) that own renewable energy generation assets, with the objective of securing stable income based on electricity sales. As the schemes we deal with are silent partnership investments, the risk of the investment is limited to the equity interest only.
We do not conduct any business which falls under financial instruments business or money lending business and none of the businesses above falls under financial instruments business or money lending business.
Business Area
Solar Power Generation
Solar power can be classed as the most relatively easy system to introduce because it basically has no regional limitations, less moving machine parts, and it generates power automatically.
We will provide total support from site negotiation to planning and operation.
We will have major EPC contractors perform the construction and maintenance of solar power systems optimal for each target area, not only contributing to the environment, but also pursuing and developing the business and economic efficiency of our customers.
Wind Power Generation
Wind power generation is a method of power generation using the wind. The generated power can be converted to electrical energy with high efficiency, and power can be generated at night if there is wind. Wind power generation is advantageous in terms of its relatively low cost and the short amount of time it takes to build.
In order to generate more power, it is necessary to build a windmill at a windy location, so precise analyses such as wind condition surveys and simulations are required.
Nonetheless, the market for wind power generation, which generates power using the never-depleting natural resource of the wind, is expected to expand rapidly in the future due to the improvement of power generation systems and deregulation.
We are developing our wind power generation business including small-sized wind power and offshore wind power systems.
Biomass Power Generation
Biomass power generation generates electricity by burning the waste such as wood chips to turn a turbine.
There are high expectations and a great deal of attention on biomass power generation as a form of power generation with low environmental impact and based on the “carbon neutral*” concept. By utilizing livestock excretion and garbage in rural areas in Japan and overseas as resources, it is possible to maintain and promote the natural circulation functions of the environment and to contribute to improving the environment, and it is possible to have a society that efficiently uses limited resources and that recycles resources in a sustainable manner.
In order to secure stable biomass fuels, we established a joint venture Mine Biomass Synergies Pte. Ltd. in March 2017, and are expanding our business with partners in Malaysia, Singapore, and other Southeast Asian countries.
* “Carbon neutral” is the concept of achieving net zero carbon dioxide emissions of biomass on a long-term basis by balancing carbon dioxide emissions and absorption as they grow during the process until they are used as resources.
Other Renewable Energy (Geothermal Power Generation・Hydroelectric Power Generation)
Geothermal Power Generation
Geothermal power generation is a power generation method that uses geothermal energy and enables stable power generation for a long period of time, day or night.
In Japan, a country rich in geothermal resources, geothermal power generation has been expanded in areas such as Tohoku and Kyushu as a stable, domestically-produced energy supply, however because it is a large-scale project, there are many obstacles to overcome.
Our development will therefore focus on binary power, which does not have the problem of running out of energy sources and which can be generated in a short development period with low risk and cost.
Hydroelectric Power Generation
Like solar power, hydroelectric power is a renewable clean energy that does not emit carbon dioxide as it generates power, and has been used in Japan as an energy supply resource for a long time.
The use of rivers and agricultural waterways for small and medium-sized hydropower generation（1,000kW or less）is particularly attracting attention. The use of unused water resources will lead to the improvement of river environments as well as environmental conservation. Although hydroelectric power may require more approvals and licenses compared to solar power, it has a high capacity factor and can supply high-quality power with little output fluctuation.
We are currently selecting potential locations.
Market Research and Consulting
We will build a business in the new environment sector based on our high-level expertise and extensive experience by making full use of our know-how and information.
We will provide one-stop support which meets a wide range of customer needs and which is necessary for the start of new environmental business.
Overseas Environmental Business
There are demands for measures to tackle the energy and environmental problems from all over the world, especially Asian countries which have remarkable economic growth.
In order to tackle this issue, we will develop our environmental business mainly in renewable energy sector, which addresses the issues and meets the needs of each country, by making use of our know-hows which we accumulated over the years and by working together with our business partners (e.g., trading houses, etc.).
