Japanese trading house Mitsubishi Corp said today it had agreed to invest in a 950MW wind farm off the northern coast of Scotland.
The Tokyo-based company has reached an accord to buy a 33.4% stake in Moray Offshore Windfarm (East) Limited (MOWEL) from EDP Renewables (EDPR) though its London-based subsidiary Diamond Generating Europe (DGE). The value of the transaction was not disclosed.
EDPR will retain a 43.6% shareholding, while French energy company Engie holds the remaining 23% of the equity in the project located in the North Sea around 22km off the coast of northern Scotland.
Mitsubishi did not disclose the value of its investment, but a source familiar with the matter estimates the project is costing JPY400bn-JPY450bn (USD 3.8bn-USD 4.3bn) to develop.
A final investment decision will be made by the end of 2018, said a Mitsubishi spokesperson. Talks in relation to securing financing are understood to be underway but still in their early stages.
Construction of the wind farm is expected to kick off by the end of this year, although the project is not due to come online until 2022.
Mitsubishi’s DGE already operates two offshore wind farms in Europe, including the 130MW Luchterduinen project in the Netherlands and the 370MW Norther offshore wind farm in Belgium.