Wind market move
SSE Renewables in $208m Japanese joint venture
The company has big international plans (pic: Terry Murden)
SSE Renewables has signed an agreement with Pacifico Energy, one of Japan’s largest developers of renewable energy, to create a joint ownership company that will pursue offshore wind energy development projects in the country.
The move to enter Japan’s growing offshore wind market will help support the further expansion and diversification of SSE Renewables’ longer-term growth pipeline.
Perth-based SSE Renewables will acquire an 80% interest in an offshore wind development platform from Pacifico Energy and its affiliates for $208million of which $30million is deferred subject to a number of conditions.
Japan has clear offshore wind targets of 10GW by 2030 and 30-45GW by 2040 as the country seeks to decarbonise and achieve greater energy independence. The targets are backed by a commitment to run regular offshore wind auctions for support.
The transaction will see the creation of a new joint ownership offshore wind company which will drive development activities in Japan and the acquisition of a number of early-stage offshore wind development projects geographically spread across Japanese waters.
These early-stage projects are expected to use a mixture of fixed and floating technology and are working towards being selected for future auctions.
In the last 12 months SSE has begun to export SSE Renewables’ capabilities in offshore wind development, construction and operation to international markets where it sees growth opportunities.
Japan now joins Spain, Portugal, Denmark, and Poland as being markets where SSE Renewables is actively looking to develop offshore wind projects and this acquisition could lead to further development options in the East Asian market which is expected to deploy up to 140GW of offshore wind by 2050.
Jim Smith, managing director of SSE Renewables, said: “Today is an exciting next step for SSE Renewables as we enter Japan which has huge ambitions for offshore wind deployment.
“And in Pacifico Energy we have found a fantastic local partner with hugely complementary local capabilities, experience and insights that can help bring our expertise in developing, building and operating offshore wind to Japan.
“We want to help realise Japan’s renewables ambitions andbe a significant part of their offshore wind plans during the decades ahead, and we’re looking forward to working with the new team, as well as with local communities and other stakeholders to realise the benefits of the offshore wind industry.
“This is an exciting period for SSE as it continues to grow and deliver its low-carbon electricity infrastructure strategy, including a trebling of our renewables output by 2030.”