SSE Renewables and Pacifico Energy form joint venture for Japan

4C Offshore | Tom Russell
By: 29/09/2021 SSE Renewables
SSE Renewables has signed an agreement with Pacifico Energy to create a joint ownership company that will pursue offshore wind energy development 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.

Key elements of the transaction include the creation of a new joint ownership offshore wind company, which will drive development activities in Japan. Up to 20 Japan based employees from Pacifico Energy will be transferred to the newly created offshore wind company who will be complemented by SSE Renewables employees.

The two companies have also planned the acquisition of a number of early-stage offshore wind development projects geographically spread across Japanese waters, with the potential to progress to deliver multiple gigawatts. These early-stage projects are expected to use a mixture of fixed and floating technology and are working towards being selected for future auctions. The two most advanced projects have secured grid access and advanced local stakeholder engagement has been undertaken.

The new entity is expected to progress its 10 GW portfolio of early stage development opportunities, with the most advanced aiming to enter bid rounds before or in the mid-2020s. The new company will also continue to collaborate with local communities and authorities and aim to integrate offshore wind farms with the local environment.

Jim Smith, Managing Director of SSE Renewables, 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 LLP acted as respective financial and legal advisors on the transaction.