ITOCHU Announces the Establishment of a Renewable Energy Development Company in North America

March 24, 2022

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today the establishment of Tyr Energy Development Renewables, LLC (headquartered in Kansas; hereinafter "TED"), a company that specializes in the development of renewable energy in the United States. Going forward, renewable energy-related businesses are expected to grow significantly in the United States and their development will gain momentum.

In the United States, the federal government has set the environmental goal of achieving net-zero CO2 emissions in the electric power sector by 2035 and becoming carbon neutral by 2050 against the background of increasing environmental issues. With renewable energy currently accounting for approximately 20% of total energy supply, efforts will be made to accelerate growth in the renewable energy area with a view toward achieving the goal.

Before establishing TED, ITOCHU had been moving forward with investment in and the development of renewable energy through Tyr Energy, Inc. (headquartered in Kansas; hereinafter "Tyr"), its U.S.-based subsidiary engaged in the development of a solar power plant whose current output capacity approximately is 3.0 gigawatt (equivalent to three nuclear power plants). Now, ITOCHU has established TED as a new company featuring an organizational structure in which the series of services necessary for the development of renewable energy, such as securing land, connecting to power grids, acquiring different types of permits, selecting core equipment and construction companies, negotiating and concluding power purchase agreements, and making financing arrangements, are completed in house. This structure enables TED to advance multiple large-scale projects simultaneously. It will work to increase the scale of earnings and improve efficiency, thereby enhancing corporate value in terms of its development platforms.

ITOCHU will increase its efforts to develop renewable energy-related businesses in North America by moving this project forward and by leveraging Tyr's more than 20 years of experience in the electric power business in the United States and the knowledge accumulated through the renewable energy-based power plants run by its subsidiary, NAES Corporation (headquartered in Washington), which is the world's largest independent operation and maintenance service provider.

ITOCHU highlights a continued contribution and commitment to the SDGs as one of its basic policies in Brand-new Deal 2023, its medium-term management plan, and as part of these efforts, is in the process of promoting renewable energy-related businesses. Through this project, it will respond to market demand in North America where a large-scale energy conversion is necessary, and seek to contribute to the creation of a recycling-oriented society.

Overview of the New Company

Company name Tyr Energy Development Renewables, LLC (abbreviated TED)
Representative Robert Shanklin
Head office Overland Park, Kansas, the United States
Established 2022
Business description Renewable energy-related businesses

About Tyr

Tyr is a U.S.-based company wholly owned by ITOCHU engaged in development, investment, operation and asset management for electric power facilities. To date, it has invested in power generation assets with a total output capacity of approximately 5.3 gigawatt while also retaining an ownership interest in renewable energy-based power plants in North America, the world's largest electric power market.

Company name Tyr Energy, Inc. (abbreviated Tyr)
Representative Garrick Venteicher
Head office Overland Park, Kansas, the United States
Established 2002

About NAES

NAES is a U.S.-based company wholly owned by ITOCHU. It provides operation and maintenance services to power plants, oil and gas, and chemical-related facilities predominantly in North America. NAES is also involved various services including engineering, construction management, remote operation of power plants and power transmission lines, asset management, industry regulatory compliance, periodic inspection work and work on electrical equipment, and contributes to the safety and reliability of key energy infrastructure.

Company name NAES Corporation (abbreviated NAES)
Representative Norm Escover
Head office Seattle, Washington, the United States
Established 1980