Marubeni Corp., the diversified trading group, and electrical engineers, Kita Koudensha Corp., have raised 1.7bn yen ($14m) in limited-recourse project finance from Sumitomo Trust & Banking Co. for their joint-venture company that is building a wind farm on the northern island of Hokkaido, Japan.
The company, called Sarakitomanai Wind Power Co., will complete the 14 850 kW wind farm, which is close to Wakkanai City, on the northern coast of Hokkaido, in December. The funds will cover about 60 per cent of the total 3bn yen needed for the wind farm,
As well as being Japan’s largest ever private-sector financing of a wind power project, it’s also the first project finance contract for a large-scale wind farm where the wind farm does not take on the risk for wind conditions.
Marubeni has a great deal of experience in financial activities such as project finance and aims to increase its exposure to operations involved in wind power and other clean energy systems, the company said.
“In the near future Marubeni will focus on combining various financing plans such as lease finance or corporate finance as well as project finance to build large scale wind power plants,” a Marubeni spokesman said.
Hokkaido Electric Power Co. will have the right to sell the power generated from the wind farm for 17 years after successfully bidding for the rights.
It’s the first example of a large-scale wind farm being left to run on public land and the business is supported by the New Energy Development Organization.