Japanese corporation Mitsui is to invest €575m in Mainstream Renewable Power to accelerate growth of the developer’s global renewable energy portfolio, across the Americas, Africa and Asia-Pacific.
Mainstream will issue new common shares, giving Mitsui a 27.5% ownership interest.
Mitsui will take a long-term active role in the growth of Mainstream, alongside Aker Horizons, which will own 54.4% of Mainstream following the transaction.
This transaction values Mainstream at approximately €2.1bn on a 100% basis.
Mitsui will leverage its global business network across industries and its wide-ranging industrial capabilities, including global independent power producer (IPP) competence from 22 countries.
Mitsui’s global presence, “deep experience” in the power sector and global strategic alliances, coupled with Aker Horizons’ industrial capabilities, will have “significant strategic implications” for Mainstream’s transformation into a renewable energy major.
These include accelerating Mainstream’s geographic expansion into high-growth markets, broadening its routes to market, particularly in corporate power purchase agreements (PPAs), and accelerating the increase in Mainstream’s construction and operations capacity across multi-gigawatt platforms.
Mitsui, Aker Horizons and Mainstream aim to promote and develop “strong business clusters in the renewable energy space”, building on years of successful cooperation between Mitsui and the Aker group.
Mitsui’s investment in Mainstream will further strengthen the strategic partnership between the two industrial groups, paving the way for collaborations in new business areas such energy trading, energy management, battery storage, as well as green hydrogen and ammonia.
Since Aker Horizons announced the acquisition of a 75% in Mainstream in January 2021, the company has delivered material operational progress, including advancing the construction of its wholly owned 1.4GW Andes Renovables wind and solar generation platform in Chile which is on track to be fully operational next year.
Other progress includes increasing Mainstream’s global portfolio by 5.2GW, bringing it to 16.6GW and launching the 1GW Nazca Renovables platform in Chile, including the signing of a private PPA with a strategic partner
Mainstream group CEO Mary Quaney (pictured) said: “There has never been a more critical time in the history of our planet to accelerate the global transition to renewable energy.
“Today’s transformational announcement reinforces Mainstream’s leadership position in the global race to net zero as well as enabling nations to rapidly reduce their dependence on oil and gas imports through the large-scale deployment of renewables.
“We are delighted to welcome Mitsui as our new strategic partner alongside Aker Horizons. Together we are fully focused on expediting our ambitious growth plans and leveraging our collective expertise and resources to transform Mainstream into a global renewable energy major this decade.”
Mitsui chief operating officer Kazumasa Nakai added: “We are convinced that the participation in Mainstream will further strengthen the strategic partnership between the Aker group and Mitsui, driving forward our renewable energy transition and greenhouse gas reduction in response to global climate change.”
Following the transaction, Eddie O’Connor, along with Irish retail investors, will hold the remaining 18.1% in Mainstream.
Closing of the transaction is expected in April 2022.
Mitsui, Aker Horizons and Mainstream intend to continue developing Mainstream towards an initial public offering.
DNB Markets, a part of DNB Bank ASA, has acted as financial advisor and Advokatfirmaet BAHR AS has acted as legal advisor to Mainstream and Aker Horizons in connection with the transaction.