JERA Co., Inc. (“JERA”) has agreed to acquire a 24.95% equity interest from Marubeni Corporation in the Gunfleet Sands Offshore Wind Farm project off the coast of the United Kingdom.
The Gunfleet Sands project has 172.8MW of installed capacity, and is located off the coast of Essex County, the southeastern part of the U.K. It consists of 48 fixed-bottom offshore wind power generators and began operations in April 2010.
The offshore wind power business is a mature industry in Europe. However, JERA recognizes that this business is still at an early stage in Asia, including Japan, having much room to develop. JERA also believes that it is able to capitalize on its strength considering its business scale and expertise in conventional power project development.
Ørsted A/S (“Ørsted”) is a partner in the Gunfleet Sands project and is the global market leader in offshore wind power, holding the world’s largest market share. JERA will work together with Ørsted, as well as the Development Bank of Japan which already participates in the project. Through its participation in the Gunfleet Sands Project, JERA will gain knowledge and experience in operation of the offshore wind power generation and leverage this to move forward with projects in Japan and abroad. This is JERA’s first power generation business acquired in Europe. Associated with this participation, within FY2018, JERA will newly establish an operation base in the U.K. to expand business activity in Europe.
Renewable energy is expected to be a growth business globally. JERA will seek to enhance its enterprise value and contribute to reducing the environmental load of power generation, through optimizing its portfolio of conventional and renewable power generation assets.