Engie and Tokyo Gas have formed a joint venture that will develop wind and solar energy projects in Mexico with a combined capacity of over 898MW.
The 50:50 JV, called Heolios EnTG, will develop, finance, construct, own, operate and maintain six renewable energy projects totalling 898.7MW.
Two of the facilities will be onshore wind, including the operational 50MW Tres Mesas plant, and four are solar farms.
The five remaining developments will come online this year and next. They are the Tres Mesas 4 wind farm, and the Abril, Villa Ahumada, Trompezon and Calpulalpan PV plants.
All six projects have 15-year power purchase agreements secured in Mexican power auctions.
Heolios EnTG builds on a relationship between the two companies dating back to 1983, the partners said.
Engie Latin America business head Pierre Chareyre said: “We are delighted to further consolidate the relationship of mutual trust between our teams and those of Tokyo Gas with the creation of Heolios EnTG.
“This joint venture will combine our complementary areas of expertise and will enable Engie to continue to grow in a key area, the development of renewables in Mexico with Tokyo Gas.
“The partnership scheme implemented with Tokyo Gas also highlights Engie’s commitment to dynamic capital allocation through sell-downs and new investments.
“Heolios EnTG will also enable Engie to actively support Mexico in achieving its national renewable targets and to decarbonise its energy sources.”
Tokyo Gas senior managing executive officer Kunio Nohata said: “We are very pleased to have this opportunity to actively participate in the Mexican renewable market together with Engie, now a world leading company in the renewable sector, with whom we have a longstanding relationship.
“We strongly believe Heolios EnTG would bring prosperity to both ENGIE and Tokyo Gas.
“This is a landmark achievement for us as this is the first renewable project joint venture that Tokyo Gas will participate in outside Japan.”