Launch of Team New Frontier, A new organization in the Global Power Infrastructure Business Division

Sumitomo Corporation (Head office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) announced the launch of a new organization, Team New Frontier. Team New Frontier was established on October 1, 2018 under the Global Power Infrastructure Business Division, for the mission of creating a new business model in the field of power.

Sumitomo Corporation’s power business within the Global Power Infrastructure Business Division is currently based on EPC and IPP activities. However, in the past few years, the world has seen a rapid expansion in the use of renewable energy and battery storage in advanced nations, while new applications are also being introduced to emerging nations where electricity is still scarce. Moreover, emergence of innovative digital technologies and integration with electric vehicle technologies had come into existence. These dynamic environmental changes are giving birth to new diverse business opportunities within the power industry. Furthermore, new opportunities are also being created from increasing awareness of environmental protection.

The newly created Team New Frontier pursues four NEW aspects under the slogan of “NEW in Front,” and seeks to create a third business to be added to our existing EPC and IPP businesses. 

We will make use of the rich experience, know-how and network that the Sumitomo Corporation Group has cultivated, and strive to create new business fields by combining power field with other business areas as listed below, and will also look toward creating new economic spheres and platforms. We will not confine ourselves to closed innovations, but will actively consider collaborating with business partners we have worked with over the years. 

As the first activity of this new organization, Team New Frontier invested in M-KOPA Solar (“M-KOPA,” article link), a company in the solar home system business in Africa. This is the first ever endeavor into off-the-grid areas for the Sumitomo Corporation. It focuses on the business potential that exists in the areas of Sub-Saharan Africa, where approximately 600 million people live without electricity. By investing in M-KOPA, we seek to contribute to the economic development of areas where electricity is not distributed. At the same time, we also seek to gain a foothold to pursue the possibilities inherent in new power businesses, such as combining power with mobile money and financing services, and thereby strive to create new values that reach beyond the boundaries of conventional frameworks.

*1. Power system that is not connected to the power grid network provided by electric power companies

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■Sumitomo Corporation’s  Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Achieving Harmony with the Global Environment”, “Contributing to the Development of Local Communities and Industries” ,  “Establishing a Foundation for Comfortable and Enriching Lifestyles”, and  “Providing Diverse  ‘Accessibility’ ” .