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UPDATE - Mitsubishi reduces participation in Moray East offshore wind project

Offshore wind farm. Photo by: Enersea (www.enersea.nl)

November 29 (Renewables Now) - Japan's Mitsubishi Corp (TOKYO:8058) has introduced two new investors to the 950-MW Moray Offshore Windfarm East (MOWEL) project by selling shares in an intermediate holding company.

Mitsubishi said in a statement it has divested a 30% stake in Diamond Green Ltd to Kansai Electric Power Co Inc (TYO:9503) and 20% to Mitsubishi UFJ Lease & Finance Co Ltd (TYO:8593).

Diamond Green is a wholly-owned unit of UK-based Diamond Generating Europe, which in turn is fully-owned by Mitsubishi. The target serves as Mitsubishi’s executing arm for the Moray East project in UK waters and holds a 33.4% stake in it.

The other companies behind MOWEL are EDP Renovaveis SA (ELI:EDPR) with a 43.3% stake and France’s Engie SA (EPA:ENGI) with 23.3%. EDPR announced separately on Wednesday that the consortium has secured a financing package for the project, including GBP 2.1 billion (USD 2.69bn/EUR 2.37bn) in senior debt and GBP 0.5 billion in other debt instruments as well as an equity bridge loan facility. Mitsubishi confirmed this, saying that the scheme “will now move into the construction stage.”

The Japanese trader stated that the sale of Diamond Green shares aligns with both the needs of Japanese companies and its own strategy. Mitsubishi plans to continue its involvement in offshore wind projects but its strategy includes re-profiling assets and optimising its portfolio through divestments. It is interested in the Japanese offshore wind market as well, where it will use the experience gained in Europe.

(GBP 1 = USD 1.28/EUR 1.13)

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