Japan- The government is planning to establish a sovereign wealth fund in fiscal 2009 that would place priority on innovative technologies using new energy sources and natural resources, government sources said Saturday.

Amid surging prices of crude oil and other resources, the fund--tentatively named Innovation Sozo Kiko--will invest mainly in solar power generation, wind power generation, fuel cells, and other new energy technologies and natural resources.

The government is aiming to prevent excessive outflows of national wealth to countries rich in natural resources, and to build a mid- and long-term base for future economic growth.

The government hopes these new policies will transform the economy into one that functions on drastically reduced resource consumption.

Initially, the government saw the fund as an entity to buy up dormant patents owned by companies and universities, aiming to use them to produce high-value-added goods across a wide range of industries.

But the government shifted to a policy that concentrates on certain specific purposes due to a recent surge in prices of various natural resources.

Among its practical investment targets, the government is considering a project to collect and pool technologies from major manufacturers, emerging companies, universities and other research institutes that can lead to the production of innovative fuel cell technologies.

In the solar power-generation field, the fund would help companies select and concentrate on promising business projects.

In the wind power-generation field, the fund would help develop a battery system that would continue suppling electricity when winds are weak.

The fund also would sell this system to other countries.

In addition, the fund would help secure supplies of industrial materials even when natural resources are very expensive by developing rare metal alternatives.

To ensure such investments form part of a national strategy, the majority of stocks comprising the fund would be government held.

The government would have the authority to appoint or dismiss members of the fund's management committee.

The committee would make decisions on issues such as selecting investment targets.

The fund would hold about 200 billion yen in total investment.

Of that amount, the government would contribute 50 billion yen.

The remaining funds would be collected from sovereign wealth funds in the Middle East and other countries, and from the private sector.