Mainstream Renewable, Aker buy 50% stake in 800MW offshore wind plant in Japan

Wind and solar company Mainstream Renewable Power and Aker Offshore Wind have closed a deal which will give them a 50% stake in a 800 megawatt (MW) floating offshore wind project in Japan, the companies said on Monday.

The other 50% stake in the project belongs to renewable energy project developer Progression Energy.

Mainstream is a pure-play renewable energy company specialising in the development of onshore and offshore wind and solar projects.

The project in Japan is at early development stage and the site has been identified as ideal for floating wind and near good grid connections. Financial details were not disclosed.

Aker Offshore Wind is a pureplay offshore wind developer striving to create a sustainable future – one driven by clean, green energy. “We aim to source, develop and eventually operate deepwater offshore wind projects and become a power producer of renewable energy,” it states.

The company has a portfolio of development projects and prospects in Europe, North America and Asia. Last month, Aker published its financial results for the fourth quarter of 2021. Revenue for the period was NOK 6.2 million and earnings before interest, tax, depreciation and amortisation (EBITDA) was negative NOK 82.2 million. The cash balance at the end of the quarter was NOK 178.6 million.

Japan aims to expand its offshore wind energy capacity to 10 gigawatts by 2030 and to 30-45 GW by 2040 and plans auctions of areas for offshore floating wind. In December last year, the country’s industry and land ministries selected three consortiums, all led by Mitsubishi Corp (8058.T), as the operators for three offshore wind power projects in Akita, northern Japan, and Chiba, near Tokyo.

According to the September Offshore Wind Industry Trends report by IHS Markit, the bulk of potential offshore wind resources is believed to be located further offshore in deeper waters, where winds are stronger and more consistent. There is estimated to be approximately 500 GW of untapped potential in Japan.