SSE Renewables has signed an agreement with Pacifico Energy to create a joint ownership company that will pursue offshore wind projects in Japan.
The creation of the joint ownership company involves the acquisition by SSE Renewables of an 80% interest in an offshore wind development platform from Pacifico Energy.
SSE said the move to enter Japan’s growing offshore wind market will help support the further expansion and diversification of its longer-term growth pipeline.
Under the terms of agreement, the transfer of 20 Japan-based employees from Pacifico Energy to the newly created offshore wind company will be complemented by SSE Renewables employees.
It will also see the acquisition of a number of early-stage offshore wind development projects geographically spread across Japanese waters, with the potential to progress to deliver up to 10GW.
SSE said the early-stage projects are expected to use a mixture of fixed and floating technology and are working towards being selected for future auctions in the mid-2020s.
It added that the two most advanced projects have secured grid access and advanced local stakeholder engagement has been undertaken.
The new company will continue to collaborate fully and openly with local communities and authorities and aim to provide best-in-class integration of offshore wind farms with the local environment, SSE said.
SSE Renewables managing director Jim Smith said: “Today is an exciting next step for SSE Renewables as we enter Japan which has huge ambitions for offshore wind deployment.
“And in Pacifico Energy we have found a fantastic local partner with hugely complementary local capabilities, experience and insights that can help bring our expertise in developing, building and operating offshore wind to this market.
“We want to help realise Japan’s renewables ambitions and be a significant part of their offshore wind plans during the decades ahead, and we’re looking forward to working with the new team, as well as with local communities and other stakeholders to realise the benefits of the offshore wind industry.
“This is an exciting period for SSE as it continues to grow and deliver its low-carbon electricity infrastructure strategy, including a trebling of our renewables output by 2030.”
Rothschild & Co and Freshfields Bruckhaus Deringer acted as respective financial and legal advisors on the transaction.