Sumitomo buys French offshore stake

19 December 2018 - 12:00 am UTC

Japanese trading house Sumitomo Corp said Wednesday (19 December) it has acquired a 29.5% stake in two offshore wind power projects in  France, as a part of its latest advance into offshore wind power projects in Europe.

These projects have a life of 25 years with a combined cost of about EUR 4bn (USD 4.5bn) and will be developed primarily through non-recourse project finance, the company said today, without elaborating further details.     

Sumitomo said, it has acquired a minority stake in each of the 496MW Le Treport offshore wind farm projects, and the 496MW Iles d’Yeu et de Noirmoutier offshore wind farm project.

According to a spokesperson, the value of the transaction is “several tens of billions of yen.” The spokesperson declined to furnish any further details.    

The Tokyo-based firm bought the stake from its project partners Engie and EDP Renewables. Both projects are now held 31% by Engie, 29.5% by EDPR, 10% by Caisse des Dépôts and 29.5% by Sumitomo.    

Both Le Treport and Noirmoutier projects are currently being developed, respectively, in English Channel about 15km off the coast of France, and in the Bay of Biscay about 12km off the coast of France.

Sumitomo has a track record of partnering with offshore wind projects in Europe, having joined three such projects in Belgium (219MW Northwester2, 216MW Northwind and 165MW Nobelwind), and two in the UK (336MW Galloper and 573MW Race Bank).

 

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