Signing of a Share Purchase Agreement to Invest in Flotation Energy (UK)
~TEPCO RP's First Equity Investment in an Overseas Wind Power Company~
November 2, 2022
TEPCO Renewable Power, Inc.
On November 1, TEPCO Renewable Power, Inc. signed a contract with the shareholders of Flotation Energy (headquartered in Edinburgh, Scotland, UK), which engages in offshore wind power mainly in the UK, to purchase 100% of its issued shares to TEPCO Renewable Power, Inc. This is our first investment in overseas wind power.
Flotation Energy is a world leading offshore wind developer, established by current Chief Executive, Lord Nicol Stephen and Chief Technical Officer ("CTO") Allan MacAskill in 2018. They developed the world's largest floating offshore wind farm at Kincardine and they, along with the Flotation Energy team, have a wealth of experience and knowledge in offshore wind.
Currently Flotation Energy has interests in Morecambe in the Irish Sea (bottom-fixed, 480MW) and White Cross in the Celtic Sea (floating offshore, 100 MW). In addition, they are developing 13 separate projects totaling more than 12,000MW of wind farm capacity across the UK, Ireland, Taiwan, Japan and Australia.
Going forward, TEPCO, together with Flotation Energy, will obtain know-how and technologies for operating in the offshore wind business through the design, construction and O&M of actual projects. Together we will be involved in the early stages of development of a global pipeline, in order to actively develop offshore wind power projects in Japan and overseas.
Through these initiatives TEPCO will harness the power of offshore wind to help create a clean and sustainable carbon neutral society.
Comments from TEPCO Renewable Power President Masashi Nagasawa
We are very pleased and heartened to partner with Flotation Energy, which shares our mission to "deliver clean renewable energy and create a carbon neutral society" as we work together to further develop both companies.
Flotation Energy's experience and knowledge of the world's biggest floating offshore wind development and their global network will undoubtedly accelerate the development of our offshore wind business both domestically and internationally.
Through our collaboration, we will realize our management philosophy of, "Harnessing the Natural Resources to Energy, and further to Society" on a global scale, and we aim to contribute to stable supply of electricity mitigating the power price surge in the medium to long term that is linked to the recent fossil fuel price situation.
Commenting on the announcement Lord Nicol Stephen, the CEO of Flotation Energy, said:
"This is a very exciting development for Flotation Energy and recognizes the strength and success of our world class team. We have pioneered the growth of floating wind across the globe and have a very significant pipeline of projects in the UK, Ireland, and Asia Pacific. This new partnership between Scotland and Japan represents a major investment by TEPCO. It will allow us to move forward quickly with our existing projects and to kick start new opportunities right around the world. Climate change is the biggest challenge facing our planet and helping to deliver a clean, green electricity network has always been Flotation Energy's goal."
<reference>Kincardine Wind Farm developed off the coast of Scotland, UK