Tokyo Gas to buy 500-MW solar project in Texas

Japanese natural gas utility Tokyo Gas Co Ltd (TYO:9531) said today it will set up a new subsidiary in the US to acquire the 500-MW Aktina solar project in Texas.

Tokyo Gas America Ltd will establish TG Aktina Holdings LLC and a number of other units under its umbrella to buy the particular project from Chicago-based developer Hecate Energy LLC for about JPY 49 billion (USD 466.4m/EUR 396.8m).

The company anticipates closing the transaction on August 5, 2020, so it could begin construction work on the project this quarter. The plan is for Aktina to be brought online in stages, starting in the mid-2021.

The project, whose direct current (DC) capacity is 631 MW, will be realised at a site in Wharton County, near the high-demand Houston load centre. It has acquired its interconnection rights at the 345-kV Hillje substation through CenterPoint Energy and, upon completion, will sell its output to the ERCOT wholesale market.

Tokyo Gas explained its decision to acquire this project with the expectation that Texas will develop into a substantial solar market within the US. The company noted that this will be the first global solar project it takes part in from construction to commercial operation.

(JPY 10 = USD 0.952/EUR 0.810)

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