Tokyo-based Itochu Corporation plans to invest approximately $2 billion in renewable energy projects in North America by establishing a new Delaware-incorporated fund, Overland Capital Partners LP, Itochu said in a news release Monday.
Overland Capital Partners will invest in renewable energy generation assets in the US and Canada, Itochu said. Fuyo General Lease Co. Ltd. and Tokyu Land Corporation have decided to invest in the fund. The first closure has been held, according to the statement.
Kansas-based Tyr Energy Inc., a wholly owned subsidiary of Itochu, will manage the fund as general partner through its newly established subsidiaries. Working with Sumitomo Mitsui Trust Bank, Itochu will provide institutional investors, primarily in Japan, with prime investment opportunities in the fast-growing renewable energy market in North America, according to the press release.
Itochu said it has developed and invested in more than 30 power plants in the US through Tyr Energy, including wind and solar assets. Tyr Energy subsidiary Tyr Energy Development Renewable LLC (TED) is currently developing approximately 20 solar assets with a total capacity of 2.0 gigawatts (GW). TED has an integrated system for developing renewable energy generation assets at home, from land selection to development completion, including the signing of large contracts for the sale of electricity, according to the press release.
Itochu also provides power plant operation and maintenance services through its wholly owned subsidiary NAES Corporation based in Washington. NAES operates approximately 220 thermal plants with a capacity of 50 GW, as well as approximately 1,400 solar plants with a capacity of 2.0 GW, Itochu said.
In May, Itochu acquired a 100 percent stake in Pennsylvania-based American Hydro from Poland’s Warstila Corporation, along with related assets owned by Wartsila in Canada, the company said in an earlier press release. The acquisition was made through Itochu subsidiary Industrious Group Inc., which is looking to expand its equipment maintenance business in North America.
American Hydro provides services for the design, manufacture and maintenance of water turbines and related equipment at more than 2,000 hydroelectric facilities in North America. The company has a history of maintenance agreements that include the delivery of more than 700 turbines, according to the press release.
In February, Tyr Energy signed an agreement with US alternative investment manager and developer Fengate Asset Management to invest in the 160 megawatt (MW) Prairie Switch Wind project, which is under construction in Texas.
The Prairie Switch project will consist of 48 wind turbines, each with a generation capacity of 3.4 MW. The project is expected to begin commercial operations by the end of 2023, according to a separate press release.
Tyr Energy signed a long-term corporate power purchase agreement with Meta Platforms Inc. for the wind project, and the management of the sale of power in the Texas electricity market will be managed jointly by Tyr Energy and NAES, according to the press release.
Itochu said it will invest in the Prairie Switch project through “a newly established special purpose entity for the project,” along with Fengate and GE Energy Financial Services.
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