SSE Renewables is entering the Japanese offshore wind market in a joint venture with Japan’s renewable energy developer, Pacifico Energy, to pursue projects in the country.
The creation of the joint ownership company involves the acquisition by SSE Renewables of an 80% interest in an offshore wind development platform from Pacifico Energy and its affiliates for $208m of which $30m is deferred consideration subject to several conditions.
In addition to the joint venture company, the transaction includes the transfer of up to 20 Japan based employees from Pacifico Energy to the newly created company, who will be complemented by SSE Renewables employees; and the acquisition of several early-stage floating and fixed offshore wind development projects geographically spread across Japanese waters, with the potential to progress to deliver multiple GWs. The two most advanced projects have already secured grid access, SSE noted.
The new entity will progress its 10 GW portfolio of early-stage development opportunities, with the most advanced aiming to enter bid rounds before or in the mid-2020s.
Japan has set offshore wind targets of 10 GW by 2030 and 30-45 GW by 2040 as the country seeks to decarbonise and achieve greater energy independence.
Jim Smith, managing director of SSE Renewables, said: “We want to help realise Japan’s renewables ambitions and be 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.”
Japan joins Spain, Portugal, Denmark, and Poland as markets where SSE Renewables is actively looking to develop offshore wind projects, and the company believes that this acquisition could lead to further development options in the East Asian market, which is expected to deploy up to 140 GW of offshore wind by 2050.