MUFG Bank has signed a $50mn loan agreement with FirstElement Fuel, a Californian developer of hydrogen fuel stations, to finance expansion of its network.
Tokyo – MUFG Bank, Ltd. today announced it has closed its first hydrogen-linked loan agreement with FirstElement Fuel, Inc. (FEF), California’s largest developer and distributor of hydrogen fuel stations funded by institutions such as Mitsui & Co., Ltd. and the Japan Bank for International Cooperation (JBIC), to finance expansion of FEF’s hydrogen fuel station network.
California is the world’s largest market for hydrogen fuel cell electric vehicles (FCEV), with the California Energy Commission and the California Air Resources Board offering incentive programs. In addition, the state’s Low Carbon Fuel Standard program, that rewards hydrogen sales volume with credits, promotes new private investments into the hydrogen business. JBIC signed a Memorandum of Understanding with the California State Government to expand opportunities for U.S.-Japan cooperation and boost Japanese businesses in various fields of sustainability, including environmental protection.
FEF, which operates more than half of California’s hydrogen stations, is one of the world’s largest hydrogen retailers and has another 57 large-capacity hydrogen stations under various phases of development in California. By supporting FEF’s expansion of its hydrogen distribution infrastructure, MUFG hopes to gain knowledge on California’s innovative hydrogen business and benefit its stakeholders and society in the United States and Japan with a shared value to realize a low carbon emission society.”
In its newly introduced MUFG Way, MUFG defined its purpose as Empowering a brighter future, and committed to providing solutions for its customers and other stakeholders in order to achieve a sustainable environment and society. Through the lifeblood of financial services, it aims to bolster sustainability and address social issues, all the while supporting its customers’ ESG initiatives.