ITOCHU Announces Its Participation in One of the Largest Offshore Wind Power Generation Projects in Germany
December 20, 2016
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has agreed to acquire a 22.5% equity interest in the German Butendiek Offshore Wind Power Plant (hereinafter the “Power Plant”), in cooperation with CITIC Pacific Limited (headquartered in Hong Kong; Zhang Jijing, Chairman & President; hereinafter “CITIC Pacific”). The 22.5 % equity interest in the Power Plant to be acquired is now owned by the Denmark Pension Funds. Going forward, ITOCHU and CITIC Pacific will jointly participate in the operation of the Power Plant after acquiring the necessary approvals and permits. Following the acquisition of the equity interest, ITOCHU and CITIC Pacific will also jointly work on initiatives for other projects.
The Power Plant has total power generation capacity of 288 MW, which is one of the largest capacities offered by offshore wind power plants operating off the German North Sea Coast. It supplies a sufficient amount of electricity for approximately 370,000 houses for standard German families. It has been operating smoothly since its commencement in August 2015. Germany has been working to achieve the target of increasing the ratio of renewable energy in proportion to the total amount of electricity consumption to more than 80% by 2050 as part of its environmental policies. Therefore it is expected that the demand for renewable energy, starting with offshore wind power, will grow on a mid- to long-term basis. ITOCHU is looking forward to the possibility of contributing to the supply of clean electricity through the project.
CITIC Pacific is a wholly-owned subsidiary of CITIC Limited, the largest conglomerate in China. The company is the investment development platform for overseas businesses of CITIC Group. With offshore wind power generation expected to grow in China, the company intends to make investments in the offshore wind power generation business in Europe and apply the knowledge and experience gained through such investments to future initiatives. ITOCHU and CITIC Pacific have concluded a Memorandum of Understanding to facilitate the renewable energy businesses in Europe, where the application of environmentally conscious energy is underway. The Power Plant is the first joint project to be undertaken. The two companies will further facilitate the collaboration of businesses based on the Memorandum of Understanding
ITOCHU is active in expanding its power generation businesses throughout the world. ITOCHU is particularly active in renewable energy businesses, engaging in two onshore wind power projects and one onshore wind and solar power project in North America, as well as a geothermal power plant business In Indonesia. Going forward, ITOCHU will continue to make active investments in the area of power generation, including renewable energy.
Overview of the Offshore Power Generation Business in the Butendiek Power Plant
|Name of power plant||Butendiek Power Plant|
|Location||32 km offshore from Sylt, off the German North Sea Coast|
|Power generation capacity||288 MW|
|Power generation type||Offshore wind power|
|Start of commercial operations||August 2015|
A photo of the Butendiek Offshore Wind Power Plant
Map of the Butendiek Offshore Wind Power Plant
Overview of CITIC Pacific
|Company name||CITIC Pacific Limited|
|Head office||Hong Kong|
|Chairman & President||Zhang Jijing|
|Description of business||Investment in special steel, resources, energy, real estate, environment-related industries, information technology and telecommunications, and other businesses.|
|Shareholders||CITIC Limited (100%)|
|Year of establishment||1992|