Progression Energy has sold an initial 50 per cent interest in an 800 MW floating offshore wind project in Japan to Mainstream Renewable Power and Aker Offshore Wind. The deal has closed although the financial details have yet to be revealed. The offshore wind project’s location is thought to be suitable for floating wind and is close to grid connections.
With the completion of the acquisition, Mainstream, Aker, and Progression Energy will continue working together to construct the floating offshore project. To move the project forward, the three companies plan to pool their resources and expertise.
By 2030, Japan aims to have installed 10 GW of offshore wind energy capacity, with the capacity expanding to 30-45 GW by 2040. The government plans to invite tenders for offshore floating wind projects to help reach this goal.
In early 2021, Norway-based Aker Horizons, a wholly owned subsidiary of Aker ASA, announced its plan to invest in a 75 per cent equity stake in Mainstream Renewable Power, with a valuation of Euro 1 billion, which included an earn-out of up to Euro 100 million in 2023 . The valuation implied a considerable return for shareholders of up to 5.5 times the initial investment.
REGlobal’s Views: This project marks Aker’s and sister concern Mainstream Renewable Power’s entry into the growing Japanese offshore wind market. With Progression Energy’s established team in Japan, and the experience of the other two companies in offshore wind across the globe, this project will benefit from the collective expertise of these three players.