Mitsubishi Corporation Acquires New Offshore Transmission Asset
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 financial adviser.
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.
Mitsubishi Motors Public Relations Department http://www.mitsubishi-motors.com +81-3-6852-4275
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net
Provider ID: 00027416