Etrion sells 60-MW Mie solar project in Japan

Independent solar power producer Etrion Corp (TSE:ETX) has pocketed JPY 3.4 billion (USD 32.5m/EUR 27.5m) from the sale of its investment interest in its 60-MW Mie photovoltaic (PV) project in Japan.

Japanese developer Ziva Energy is the buyer. Its acquisition included the contractual structure and associated economic obligations and benefits related to the project.

The completion of the deal was announced on Friday. In addition to the above mentioned amount, the Swiss firm's Japanese unit Etrion Japan KK has also received a development fee totalling JPY 300 million, which comes on top of a previously obtained sum of JPY 700 million given as compensation for Etrion’s work on the project to date.

The solar project, located near Yokkaichi city in Mie prefecture, has been the matter of a long dispute between Etrion and Jiva since the two companies signed a development services agreement in 2015. Three years later, the duo entered a dispute over the terms of the pact, according to which Etrion had to finance the development and take its ownership once the power plant became operational.

“The Mie transaction greatly strengthens our cash position and provides flexibility on how best to maximise shareholder value,” said CEO Marco Antonio Northland.

Earlier this week, Etrion unveiled the start of a sales process for its Japanese solar portfolio, which includes 57 MW of operational solar farms and a 45-MW project under construction in Niigata prefecture.

(JPY 100 = USD 0.955/EUR 0.809)

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