Case Study 7: Strategic Partnership Between Sojitz Corporation, a Japanese General Trading Company, and Japan-Based Startup Looop Inc.
– Sojitz Executes Strategic Investment via Pegasus-Managed CVC Fund and Successfully Forms a Business Alliance with Looop Inc. –
Joint Implementation of a Next-Generation Energy Generation Project
＜Overview＞
Sojitz Corporation, a major Japanese general trading company, and Looop Inc., a Tokyo-based renewable energy startup, entered into a strategic partnership in 2020 to jointly implement a next-generation renewable energy generation project. The collaboration was aimed at promoting the transition to a decarbonized society by building sustainable energy infrastructure.
Looop was established in April 2011 following the Great East Japan Earthquake, initially providing free solar panels to affected areas. Since then, it has developed, sold, and installed more than 2,500 solar power systems across Japan and offers remote monitoring services at over 4,000 sites. Following Japan’s electricity market liberalization in 2016, Looop also entered the retail electricity business and has grown its customer base to over 220,000.
Recognizing the increasing global demand for decarbonization and the shift toward renewable energy, Sojitz sought to expand its role in sustainable business development. In January 2019, it launched a CVC fund with Pegasus Tech Ventures to invest globally in innovative businesses. In 2020, Pegasus introduced Looop to Sojitz, resulting in an investment and the formation of a strategic alliance focused on renewable energy.
＜Challenges and Solutions＞
One of the primary challenges in expanding renewable energy lies in the unstable output caused by natural fluctuations in solar and wind generation. These variances make it difficult to ensure a stable power supply, highlighting the importance of advanced energy management systems. Additionally, high initial equipment costs and ongoing maintenance expenses remain significant barriers to widespread adoption, especially for solar panels and energy storage systems. Furthermore, regional differences in geographic conditions affect the efficiency and scalability of renewable energy deployment.
To address these issues, Sojitz, Looop, and Osaka Gas launched a large-scale solar power project in Vietnam, where rapid economic development and rising energy demand make the transition from fossil fuels especially urgent. The project focuses on installing rooftop solar panels in southern Vietnam, particularly within large industrial zones and manufacturing facilities, to reduce electricity costs and environmental impact for local businesses.
Rather than requiring customers to pay for solar panel installations upfront, the project enables them to purchase electricity generated on-site, thereby promoting adoption without heavy initial investments. This model contributes directly to the decarbonization of the industrial zones involved. It is estimated that the project will reduce approximately 5,800 tons of CO₂ emissions annually.
The initiative is also supported by Japan’s Ministry of the Environment through the Joint Crediting Mechanism (JCM), which provides financial support for high-performance, low-carbon technologies deployed in developing countries. The collaboration with the Vietnamese government enhances the project’s credibility and scope.
This partnership between Sojitz and Looop is notable for its combined emphasis on technology and business model innovation. By creating an economically viable and operationally scalable solution, the project is expected to serve as a model case for sustainable energy supply and international cooperation in the renewable sector.
Source: Sojitz Official Website
＜References＞
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Sojitz Official Website:"Sojitz forms a capital and business alliance with Looop Inc. to help shape a next-generation energy society."
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Sojitz Official Website:"Participation in Rooftop Solar Power Project in Vietnam."
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PR TIMES (Looop Inc.): "Participation in Rooftop Solar Power Project in Vietnam."
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Mega Solar Business Website (Nikkei BP): "Rooftop Solar Business in Vietnam: Sojitz, Osaka Gas, and Looop Form Joint Venture."
Note: The “Joint Crediting Mechanism (JCM)” Equipment Subsidy Program is a funding initiative by Japan’s Ministry of the Environment. It supports projects that reduce greenhouse gas emissions in developing countries by covering up to 50% of initial investment costs for qualified low-carbon technologies. The program aims to contribute to both the host country’s and Japan’s GHG reduction targets through collaborative efforts.
