Mitsubishi Corporation Acquires New Offshore Transmission Asset in the UK
United Kingdom, Sept 11, 2013 - (JCN Newswire) - Mitsubishi Corporation (MC)
is pleased to announce the acquisition of a new offshore electricity
transmission asset in the UK. With this asset, MC will commence electricity
transmission from London Array, the world's largest offshore wind farm, to
the UK's onshore transmission grid.
Blue Transmission London Array Limited (Blue Transmission), an entity
incorporated by a consortium formed between Diamond UK Transmission Corporation
Limited (DUTC), a UK-based MC subsidiary, and Barclays Infrastructure Funds
Management (BIF), has been granted the Offshore Transmission Owner License by
the Office of Gas and Electricity Markets (Ofgem), the UK regulators. The
license allows Blue Transmission to own and operate the transmission system for
20 years. Blue Transmission was advised by Macquarie Capital acting as
Valued at GBP 460 million (approximately JPY 70 billion), the transmission
system will link the London Array wind farm, located in the outer Thames
Estuary approximately 20km off the south east coast of the UK, with the onshore
grid at Kent.
Starting with the Walney-1 transmission asset in November 2011, MC has been
increasing its participation in the electricity transmission sector across
Europe, with other acquisitions including Walney-2 in October 2012 and
Sheringham Shoal in July 2013, both in the UK. MC has also entered the
electricity transmission business in Germany, having acquired BorWin-1/2 in
December 2012 and DoloWin-2/HelWin-2 in April of this year.
With the acquisition of the London Array asset, MC now owns and operates a
total of 8 assets in Europe, 4 each in the UK and Germany, bringing its gross
transmission length to 900km and its capacity to 4GW.
In accordance with this growth in the electricity transmission business, MC
established a new subsidiary, Diamond UK Transmission Corporation Limited
(DUTC), in the UK in 2011. All assets in Europe will be consolidated under
DUTC, which will allow for improved efficiency in the management of assets
across the continent.
Some 50GW of offshore wind power capacity is expected to be developed in
Europe by 2020. Drawing on the know-how obtained from current operations in the
UK and Germany, MC will seek further involvement in this sector with a view to
contributing to the provision of stable power transmission systems,
particularly in Europe where power generation through renewable sources is on
the rise. The renewable energy thrust is also expected to gain ground in North
America and Asia in the near future, and MC's approach going forward will
be to also tap into those markets as they develop.
This approach is consistent with "New Strategic Direction", the
company's recently released corporate strategy, under which MC is seeking
to double net profits from non-resource business areas and to create a more
diversified portfolio in line with a long-term vision to create multiple
sizable "winning businesses".
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business
enterprise that develops and operates businesses across virtually every
industry including industrial finance, energy, metals, machinery, chemicals,
foods, and environmental business. MC's current activities are expanding
far beyond its traditional trading operations as its diverse business ranges
from natural resources development to investment in retail business,
infrastructure, financial products and manufacturing of industrial goods. With
over 200 bases of operations in approximately 80 countries worldwide and a
network of over 500 group companies, MC employs a multinational workforce of
nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Public Relations Department
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