Iberdrola has signed an agreement with Cosmo Eco Power, a subsidiary of Cosmo Energy Holdings, and engineering firm Hitz to jointly develop the 600MW Seihoku-oki project in Japan.
With the new project, which is currently under development, the company expands its footprint in the Japanese offshore wind market.
The Seihoku-oki offshore wind farm is expected to enter round 2 of the capacity auction that is expected to be conducted by the Japanese government between current year and 2022.
Once the transaction is closed, subject to the usual regulatory approvals, the project will be equally led by Iberdrola and Cosmo Eco Power, together with Hitz.
The agreement for Seihoku-oki wind farm marks the company’s second deal in Japanese market, following the acquisition of Acacia Renewables.
Acacia has two offshore wind farms under development, with a combined capacity of 1.2GW along with a 3.3GW offshore wind pipeline in the south of the country.
The company also has four other projects in the pipeline, with a total capacity of 2.1GW, which will be developed by Iberdrola together with Macquarie’s Green Investment Group (GIG).
Iberdrola said the new project brings its pipeline to 3.9GW in Japan, and its entry into a new offshore wind market would strengthen its position as a renewable energy company.
The firm stated: “The entry into a new offshore wind project reinforces Iberdrola’s diversification strategy aimed at leading in this technology while consolidating its position as the world’s largest renewable energy company.”
The company intends to compete in rounds 2, 3 and 4 of the offshore auctions announced by the Japanese government.
Last month, the electric utility company has agreed to acquire majority stake in DP Energy’s offshore wind portfolio in Ireland, totalling 3GW.
