Denmarks Dong Energy sold almost half of its Gunfleet Sands offshore wind farm to Marubeni Corp. , making the conglomerate the first Japanese company to invest in an offshore wind project. Marubeni will pay Dong approximately lb200 million in cash to acquire a 49.9 percent stake in the 172-megawatt Gunfleet Sands wind farm.
The Tokyo-based company will have a total of 450 MW of renewable energy capacity under its portfolio when the deal is completed in the fourth quarter, provided it wins project finance commitments from banks, the company said in a statement.
Gunfleet Sands is located approximately 7 kilometers southeast of Clacton-on-Sea, Essex. The wind farm went online in June 2010 to serve 125,000 households or 20 percent of all Essex households. It houses 48 wind turbines rated at 3.6 MW each, all provided by Siemens Energy AG.
It is estimated to have the capacity to reduce approximately 480,000 tons of carbon dioxide.
Under the terms of the deal, Dong will provide operation and maintenance services to the wind farm. The two companies have also agreed to a long-term purchase agreement for the power and green certificates Marubeni’s share of the project will generate.
The certificate, also known as renewable energy certificates, is a tradable commodity proving that 1 MW hour of electricity is generated using eligible renewable energy sources. The certificate is generally used to meet renewable energy quotas set by a country.
Before the deal, Dong accounted for around 23 percent of Britain’s total installed offshore wind power as of 2010. Its remaining portfolio now consists of the 90-MW Burbo Bank and Barrow wind farms and the giant 184-MW Walney 1 site.
The company is also currently building four new wind farms, including the London Array, which will be the world’s largest wind farm designed to generate 630 MW of power when it is operational by 2012.
Marubeni’s green track record
Marubeni, one of the five largest Japanese trading companies with businesses ranging from food to mining, is no stranger to the renewable energy sector.
As a contractor and independent power producer, the company plans to increase its power asset portfolio from 8,796 MW to 11,000 MW, with renewable energy representing 10 percent of the whole.
Executive officer Masumi Kakinoki said that the company is particularly interested in offshore wind and plans to expand its presence in the global market.
The company’s most recent investment in the sector is investing in a $5.5 billion power transmission project off the United States Atlantic coast that will link 6 gigawatts of power generated by wind farms installed at sea.
«We are delighted to have reached an agreement with Dong Energy for this important partnership; it is especially significant as it is the first investment by a Japanese company into an offshore wind power project,» Mr. Kakinoki said.
«We believe the offshore wind power sector represents a tremendous growth opportunity not only in Europe but in Japan and the Americas as well.» Mr. Kakinoki added.
Other Japanese conglomerates like Sumitomo Corp. and Itochu Corp. have also invested in wind energy but in more traditional onshore projects.
In April, the companies joined the original planners of the Shepherds Flat wind project as investors. The Shepherds Flat wind project is said to be one of the world’s largest land-based wind farms.
Sumitomo and Itochu invested an undisclosed sum with Google to form a pool worth $500 million for Shepherds Flat. Google’s contribution was $100 million, according to its company blog. The project has a total generating capacity of 845 MW and will take about $2 billion to build.
