APAC: Sumitomo buys stake in Belgium offshore wind project

27 August 2018 - 12:00 am UTC

Trading house Sumitomo has acquired a 30% stake in a 219 MW wind power project off the coast of Belgium.

Sumitomo said Monday (27 August) that Belgian offshore wind power developer Parkwind is developing the project, Northwester2, in the North Sea about 52km off the coast of Belgium (water depth of about 40 meters).

A Sumitomo spokesperson said the amount of the purchase effective 24 August is valued at “several billions of yen,” but declined to give specific figures. The group bought the 30% stake from Parkwind’s parent Colruyt Group, a retail chain in Belgium, while Parkwind owns the remaining 70%.  

The project will cost JPY 90bn (USD 809m) overall and the funds are to be procured primarily through non-recourse project finance, Sumitomo said. The company did not give further details on the financing.       

Construction of the project is slated to kick off within 2018 and will be completed in 2020. The project will power about 210,000 households over the 25-year period.          

Sumitomo has a track record in offshore wind power projects Europe having joined two in Belgium (216MW Northwind and 165MW Nobelwind) and two in the UK (336 Galloper and 573MW Race Bank).      

The group is one of the latest of Japanese companies to invest in European offshore wind power projects.  Japanese independent power producer J-Power and power utility Kansai Electric earlier this month signed an accord to buy a minority stake in the 857MW Triton Knoll offshore wind project in the UK.

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