Fundraising

Japan’s Itochu invests in 217MW US renewables plant

The financial group has created a platform alongside Canada's Northleaf Capital and other investors to co-develop the Texan project.

-

Tokyo-headquartered Itochu Corporation has agreed to invest in a 217MW wind and solar hybrid power generation project in Texas. 

The Japanese conglomerate said it will take part in the project through a new subsidiary that will be established together with other investors, including Canadian private equity firm Northleaf Capital Partners. 

The Cotton Plains project, originated by Apex Clean energy, a Virginia-based renewables developer, is currently under construction. Upon completion, which sponsors expect to achieve in the first half of 2017, the project will comprise 84 wind turbines and a 15.4MW solar plant. It will supply electricity to the Texas market. 

The project is expected to cost “a little over $300 million”, according to a Nikkei report. 

The deal does not mark Itochu's first step in North America’s power market. Through its subsidiary Tyr Energy, the group is involved in the management and development of more than 15 power generation plants in the US. 

It also has another subsidiary, called NAES, that provides operation and maintenance services to more than 130 power plants, mainly in the US.