Principle Power secures $22 million from Tokyo Gas

In: Windfarms
Principle Power has secured an investment exceeding USD 22 million from Tokyo Gas, a major Japan-based energy player, to fund the company’s worldwide growth strategy and the continued commercialisation of its floating wind technology.

In addition, the accompanying Cooperation Agreement signed by Principle Power and Tokyo Gas sets a foundation for creating commercial-scale deployment opportunities for Principle Power’s WindFloat technology in Japan.

Green Giraffe, specialist advisory firm focused on the renewable energy sector, advised Principle Power during this equity round process.

The transaction, which is the largest equity round closed by Principle Power to date, follows Principle Power’s recent incorporation in Japan through Principle Power Japan G.K. The company also joined with voting membership in the Japan Wind Power Association (JWPA). Principle Power is a member of the Japan Offshore Wind Task Force (JOWTF), a joint initiative recently launched by JWPA and the Global Wind Energy Council (GWEC) to accelerate Japan’s offshore wind market.  

“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. Closing this deal in the current business environment overshadowed by the Covid-19 pandemic, while a significant achievement on its own, demonstrates the very solid fundamentals of our industry in building a resilient clean energy economy”,
said Principle Power CEO João Metelo.

“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. And we strongly believe that floating wind holds a great promise for Japan. Principle Power, with its unparalleled technical expertise and established track record, is the perfect strategic partner for realizing our ambition to deploy large-scale commercial floating wind projects in Japan and globally,”
said Tokyo Gas President Takashi Uchida.

Principle Power developed the WindFloat semi-submersible floating foundation for wind turbines. It has tallied up six years of operational experience in Portugese and Scottish sites. Towards the end of last year (2019), the 25 MW
WindFloat Atlantic project, Europe’s first floating wind farm, was connected to the grid in Portugal. It is shortly to be classified as ‘fully commissioned.’ Other projects using WindFloat foundations include the 50 MW Kincardine Project in Scotland and 30 MW Golfe du Lion project in the south of France, which are expected to come online between 2020 and 2022.

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