Principle Power has secured in excess of US$22M from Tokyo Gas, a Japan-based energy player, to fund the company’s growth strategy and continued commercialisation of its floating wind technology
The transaction follows Principle Power’s recent incorporation in Japan and strengthens the company’s position in this important market.
Tokyo Gas enhances Principle Power’s existing shareholder base, which includes several energy and supply chain companies, such as EDP Group, Repsol, Aker Solutions and ASM Industries. Tokyo Gas also brings expertise in development, engineering and operating large energy and infrastructure projects around the world.
An accompanying co-operation agreement signed by Principle Power and Tokyo Gas sets out a path for commercial-scale deployment opportunities for the former’s WindFloat technology in Japan.
Principle Power chief executive João Metelo said Tokyo Gas is a trusted local partner, which would be a key success factor in Japan. “The investment by Tokyo Gas sets a strong foundation for our expansion in Asia,” he said.
Tokyo Gas president Takashi Uchida said, “Tokyo Gas has been diversifying into power generation over the last few years and building a portfolio of renewable energy projects around the world. We have a strategic interest in offshore wind in order to expand our domestic and international power business and to achieve net-zero CO2 emissions. We strongly believe that floating wind holds a great promise for Japan.”
“We are strongly committed to the Japanese market and will continue to deepen our relationships with offshore wind project developers and other stakeholders,” Mr Metelo said.
According to Japan’s 5th Strategic Energy Policy, renewable energy is expected to comprise 22-24% of Japan’s total energy mix by 2030. The government anticipates that offshore wind will make a significant contribution to this target as Japan has strong fundamentals, including excellent offshore wind speeds and long coastlines.
The Ministry of the Environment estimates that more than 80% of Japan’s potential offshore wind resource of 1,900 GW is in water depths greater than 50 m, necessitating the use of floating offshore wind solutions.
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