Japanese trading house Marubeni said Tuesday (5 February) that it is seeking project financing for a 105MW solar project in Oman.
Marubeni said in its release that the special purpose company, launched jointly with local firms, has signed a contract with Petroleum Development Oman (PDO). Under the accord, electricity produced at the solar farm, that the SPC will build in Amin in southern Oman, will be sold to PDO over a 23-year period.
“Project financing is being arranged for this project,” said Marubeni. The project is estimated to total JPY 10bn (USD 91m), according to a Marubeni spokesperson, who declined to provide further details on financing.
The SPC is held 51% by Marubeni, 30% by Oman Oil Facilities Development, 10% by Bahwan Renewable Energy, and 9.9% by Modern Channel Services. The SPC plans to commence commercial operation of the solar farm from May 2020. The move is the latest in the series of Marubeni’s push into energy activities outside Japan.
The company holds power generating assets exceeding 12GW capacity across 22 countries. It is also strong in renewable energy projects including its investment in the 1.177GW solar project near the town of Sweihan, in Abu Dhabi, United Arab Emirates.
In September last year, Marubeni pledged to focus more on renewable energy with an aim to bring the clean energy to make up about 20% of electricity it generates worldwide by 2023 from 10%.