AP Group has invested in Twelve™, a California-based company leveraging innovative CO2 electrolyzer technology to produce low-carbon synthetic fuels, notably enhancing efforts towards decarbonizing hard-to-abate sectors in Japan.

Target Company Overview

The Japan Hydrogen Fund L.P., along with its affiliate companies (collectively referred to as 'AP Group'), has executed an investment in Twelve™ (hereafter 'Twelve'). Based in California, United States, Twelve possesses a proprietary CO2 electrolyzer technology that generates carbon monoxide (CO) using significantly less energy compared to traditional methods. This CO, along with hydrogen (H2), is utilized in the production of eFuel, a low-carbon synthetic fuel. Unlike other low-carbon fuel production methods, this process does not compete with food production or face constraints in raw material procurement.

Twelve has established a 14-year supply contract with the International Airlines Group (IAG), which includes British Airways and Iberia, as synthetic fuels are increasingly being recognized within the aviation industry as a viable decarbonization solution. With the implementation of supportive policies in Europe, demand for such fuels is expected to grow significantly.

Industry Overview in Japan

The landscape for hydrogen and synthetic fuels in Japan is evolving rapidly, driven by growing concerns of climate change and the necessity for decarbonization in key sectors such as transport