Mainstream and Aker Offshore Wind close Japan development transaction
Mainstream Renewable Power and Aker Offshore Wind have closed the transaction, announced in August 2021, which will see them take an initial 50 percent stake in Progression Energy’s 800 MW floating offshore wind project in Japan.
The project is a well-formed early-stage development opportunity, and the site has been identified as ideal for floating wind and in proximity to good grid connections.
With the successful closing of the transaction, the parties will now collectively continue to progress the project.
As a consortium, the three companies bring together highly complementary capabilities and experience.
Aker Offshore Wind, as a part of the Aker group of companies, leverages decades of offshore and floating expertise, whilst Mainstream brings a global leadership position in offshore wind development. Progression Energy has a successful track record in identifying markets early with strong fundamentals and positioning itself for success.
Progression Energy has a team established in Japan with experience in engaging stakeholders such as fishing unions and securing permits for its multiple projects.
Mary Quaney, Chief Executive Officer of Mainstream, said: "We are delighted to partner with Aker Offshore Wind and Progression Energy to expand our growing offshore wind footprint in the APAC region, where we believe we will significantly contribute to the growth of the emerging Japanese offshore wind sector.
"This will support the wider decarbonisation of the economy and positively contribute to the country accelerating its net zero ambitions."
Philippe Kavafyan, Chief Executive Officer of Aker Offshore Wind, said: "We are pleased to join the floating wind ambition in Japan. As an early pioneer in floating wind power, Japan is now positioned to benefit from our access to Principle Power's field-proven WindFloat® floating offshore technology and our ability to accelerate its deployment at scale with the local partners through industrialisation."
Chris Swartley, Chief Executive Officer of Progression Energy, said: "In 2015, Progression Energy recognised that floating offshore wind would become a major segment of the offshore wind industry. Since that time, Progression Energy has originated floating projects in four markets globally. Japan has set a goal of zero emissions by 2050 with a strong focus on offshore wind.
"We are excited to bring Aker Offshore Wind and Mainstream Renewable Power on board and believe the two companies, working in partnership, bring a unique set of strengths that will be vital in helping us advance our project to Financial Investment Decision."
Japan aims to expand offshore wind energy capacity to 10GW by 2030 and 30-45 GW by 2040, according to the Ministry of Economy, Trade and Industry (METI). Project areas for offshore floating wind will be put to auction for interested companies to submit their proposals.
About Aker Offshore Wind
Aker Offshore Wind is an offshore wind developer focused on assets in deep waters and specialised on floating energy systems. With global operations, the current portfolio consists of development projects and prospects located in Asia, North America and Europe. Aker Offshore Wind effectively deploys cost-effective technologies from decades of offshore energy development.
The company is majority-owned by Aker Horizons, an investment company dedicated to creating value and reducing emissions from renewable energy and decarbonization technologies. Aker Offshore Wind [AOW-ME] is listed on Euronext Growth in Oslo, Norway. View its website here.
About Progression Energy
Progression Energy is a floating offshore wind developer with approximately 4 GWs of project assets across four markets. Progression’s development approach is predicated on its early entry into markets that demonstrate a strong geo-economic need for large-scale floating wind projects, and a relationship-based development approach that initiates relationships with communities and stakeholders well before project development begins, and cultivates these relationships throughout project development, construction and operations. View its website here.