Floating offshore wind outfit Principle Power has secured a $22m (€20m) equity investment from Tokyo Gas.
The California-headquartered company will use the capital raised to fund its worldwide growth strategy and commercialisation of its WindFloat technology.
The transaction, which is the largest equity round closed by Principle Power, follows its recent incorporation in Japan.
Tokyo Gas will bring “expertise in development, engineering and operation of large energy and infrastructure projects around the world”.
An accompanying cooperation agreement signed by Principle Power and Tokyo Gas will “set a strong foundation” for creating commercial-scale deployment opportunities for Principle Power’s WindFloat technology in Japan.
Principle Power chief executive Joao Metelo said: “We are thrilled about this partnership as it will allow both Principle Power and Tokyo Gas to build on their individual strengths and jointly unlock the potential of floating offshore wind in Japan, through the development of large-scale commercial floating wind projects using our proven WindFloat technology.
“With Tokyo Gas on-board we gain a trusted local partner, which is a key success factor in Japan. The investment by Tokyo Gas sets a strong foundation for our expansion in Asia, which is expected to lead global floating offshore wind development in the coming years.”
Tokyo Gas joins the company’s existing shareholder base, which includes EDP Group, Repsol, Aker Solutions and ASM Industries.
Tokyo Gas president Takashi Uchida added: “Tokyo Gas has been diversifying into power generation over the last few years and building a portfolio of renewable energy projects around the world. We have a strategic interest in offshore wind in order to expand our domestic and international power business and to lead to achieve net zero CO2 emissions.
“Principle Power, with its unparalleled technical expertise and established track record, is the perfect strategic partner for realising our ambition to deploy large-scale commercial floating wind projects in Japan and globally.”
Principle Power recently reaffirmed its commitment to the market as an independent technology company through the incorporation of Principle Power Japan and voting membership in the Japan Wind Power Association (JWPA).
Principle Power is also a member of the Japan Offshore Wind Task Force (JOWTF), a joint initiative launched by JWPA and the Global Wind Energy Council (GWEC) to accelerate Japan’s offshore wind market.
Green Giraffe, specialist renewables advisory company, advised Principle Power during the equity round process.
Tokyo Gas is Japan’s largest provider of city gas and also owns 2.8GW of power generation capacity, primarily in the Tokyo metropolitan area and surrounding Kanto region.