To whom it may concern in the press,
May 16, 2023
i Labo Inc.
i Labo Inc., a developer of hydrogen engines, and TPR Inc., a leading manufacturer ofautomobile engine parts, have formed a capital and business alliance with AQUARIUS
ENGINES, an Israeli company developing the world's first Free Piston Linear Engine (FPLE),
to work towards the early realization of decarbonization in the industrial sector through thedevelopment and popularization of hydrogen engines, as well as to enhance Japan's engine
technology competitiveness.
i Labo Inc., headquartered in Chuo-ku, Tokyo and led by President and CEO Osamu Ota,
aims to achieve early decarbonization in the industrial sector through the development andpopularization of hydrogen engines. TPR Inc., headquartered in Chiyoda-ku, Tokyo and led byPresident and COO Kazumi Yano (listed on the Tokyo Stock Exchange Prime Market,
Securities Code 6463), manufactures and sells engine parts such as piston rings. AQUARIUS
ENGINES Ltd., headquartered in Israel and led by Ariel Gorfung, has the practicaltechnology for the world's first FPLE.
In order to advance cooperation towards the early realization of a decarbonized society
through the popularization of hydrogen engines, the three companies have signed a capital andbusiness alliance agreement.
■ Brief overviews of i Labo, TPR, and AQUARIUS:
i Labo has been promoting the spread of "hydrogen conversion," which replaces existing diesel
engine parts in trucks with hydrogen engines based on the achievements of its half-century researchon hydrogen engines. This technology can be applied to heavy machinery and generators, making it
possible to achieve decarbonization at construction sites, ports, airports, and other locations wherenumerous diesel equipment and generators are in operation at low cost and with simplicity. Toaccelerate practical application, i Labo has an engine bench specialized for hydrogen engines, whichis rare in Japan, at its R&D center in Yamanashi Prefecture. Furthermore, i Labo's hydrogen
conversion technology has been adopted for the "FY2021 Demonstration Project for
Decarbonization of Heavy Vehicles by Hydrogen Internal Combustion Engine Utilization" by theMinistry of the Environment.
On the other hand, TPR's core business is the powertrain business, which manufactures parts thatsupport engines and transmissions used in transportation machinery, industrial machinery, and power
generation machinery, including automobiles. The company's piston rings and cylinder liners boast asignificant share not only in Japan but also overseas, with business operations in 11 countries and 34
facilities worldwide. In recent years, TPR has been leveraging its technical foundation cultivated in
the powertrain business to contribute to decarbonization by developing new materials such asindustrial equipment, housing and living-related materials, carbon nanotubes, and nanoporous
carbon for fuel cell catalyst support.
AQUARIUS, a publicly listed company based in Israel, established AQUARIUS ENGINES Co., Ltd.
as a wholly-owned subsidiary in Japan in June 2021. The company has successfully achieved mass
production of the world's first small and lightweight LE (Linear Engines). AQUARIUS' LE has anextremely low number of parts and no mechanical mechanisms such as valves, enabling it to achieve
overwhelming downsizing and weight reduction compared to conventional reciprocating engines. In
addition, the company's engine is being developed for practical use with fuels such as diesel,gasoline, ethanol, LPG, as well as hydrogen and ammonia.
■Background and Overview of Capital and Business Alliance with TPR
As decarbonization becomes a global challenge, electric vehicles and fuel cell vehicles are widely
known in Japan as alternatives to powertrains using fossil fuels such as gasoline and diesel engines.
On the other hand, attention is focused on hydrogen engines as the third powertrain using non-fossil
fuels, mainly in Europe. i Labo believes that the widespread adoption of hydrogen engines is not
only a significant contribution to decarbonization by truck operators and others at low cost but alsoleads to the maintenance and expansion of Japan's industrial competitiveness by utilizing Japan'sengine technology. TPR boasts high technological capabilities in the development and manufactureof engine parts, mainly piston rings and cylinder liners, as well as tackling various new material
developments that contribute to decarbonization.
In this context, the two companies have concluded a capital and business partnership by combining i
Labo's hydrogen conversion technology and TPR's engine parts development and new material
development technology and promoting joint research and development, mainly utilizing thehydrogen-only engine bench at the R&D center in Yamanashi. They have judged that this partnership
can accelerate Japan's industrial competitiveness and decarbonization of the industrial sector. Someof the funds raised through this capital and business partnership are expected to be used for
expanding i Labo's planned engine bench.
Overview of TPR and i Labo's capital and business alliance:① Joint development of hydrogen engine technology utilizing i Labo's hydrogen engine bench.
② Improvement of analytical capabilities by combining TPR's evaluation and analysis technology
with i Labo's hydrogen engine development technology.

③ Sharing of knowledge and expertise through mutual acceptance of engineers.
④ TPR's investment in i Labo for engine bench expansion, etc.
■The contents of the capital and business partnership with AQUARIUS
AQUARIUS is expanding its business to achieve decarbonization using internal combustion
technology, mainly in Europe, where the development and implementation of hydrogen engines areprogressing. They are also advancing the practical use of LE technology in power generators forcommunication antennas, and plan to expand to various powertrains in the future.
AQUARIUS has a high level of technological development and specialized network regarding thelatest internal combustion engines in Europe. The two companies have agreed to a capital andbusiness alliance based on their shared vision of making a significant contribution to thedecarbonization of the global industrial sector by combining the latest technological capabilities andbusiness networks across Japan, Europe, and Israel.
Overview of the capital and business alliance between AQUARIUS and i Labo:① A mutual investment between i Labo and AQUARIUS ENGINES Ltd.
② i Labo will support the promotion of AQUARIUS ENGINES in the Japanese market.
③ AQUARIUS will assist i Labo in the global expansion of its technologies.
④ Joint development of new products for hydrogen engines and hydrogen engine generators
through mutual technology sharing.
⑤■About hydrogen engines:
Decarbonization is a global challenge, and Japan has declared a goal of reducing greenhouse gas
emissions by 46% compared to 2013 levels by 2030. Among the decarbonization efforts, reducing
carbon dioxide emissions from diesel engines used in the industrial sector, particularly in largecommercial trucks, is a significant challenge.
In Japan, where fossil fuels are heavily relied upon for electricity, relying solely on electricvehicles (EVs) makes it difficult to achieve carbon dioxide reduction targets. Additionally, there areremaining challenges for fuel cells as they depend on rare earth materials, which need to be imported
from overseas, posing economic and security concerns. Furthermore, there is a challenge ofrelatively high manufacturing costs for fuel cells.
Industrial diesel engines require high thermal efficiency at high load conditions, as well as
durability for long-term use in harsh environments, such as ports, construction sites, and otherenvironments with dust, salt damage, and other harsh conditions.
A hydrogen engine can utilize existing engine technology to reduce manufacturing costs and isalso suitable for high load areas and harsh usage environments. In addition, while a fuel cell requires
high-grade hydrogen (Grade-D hydrogen), a hydrogen engine does not need such hydrogen,reducing the post-processing costs of by-product hydrogen from chemical factories, for example.
Hydrogen engines with these characteristics have the potential to be highly effective solutions,particularly in the industrial sector for decarbonization, through the role sharing with EVs and fuelcells.
Contact for inquiries regarding this matter:i Labo Corporation Public Relations: Mitsunobu/Kawakami
Email: pr@ilabo-corp.com