Emeryville, CA, May 27, 2020 – Principle Power has secured an over US $22 million investment from Tokyo Gas, a major Japan-based energy player, to fund the company’s worldwide growth strategy and the continued commercialization of its floating wind technology. The transaction follows Principle Power’s recent incorporation in Japan and dramatically strengthens the company’s position in this globally important market.
Successful conclusion of this corporate fundraising, which is the largest equity round closed by Principle Power to date, represents an endorsement of the company’s business plan, a validation of the strong technical track record of the WindFloat® technology, and recognizes Principle Power’s global leadership position in the floating wind industry. Tokyo Gas further enhances Principle Power’s existing shareholder base, which includes several global energy and supply chain companies, such as EDP Group, Repsol, Aker Solutions and ASM Industries. Tokyo Gas brings expertise in development, engineering and operation of large energy and infrastructure projects around the world.
In addition, the accompanying Cooperation Agreement signed by Principle Power and Tokyo Gas sets a strong foundation for creating commercial-scale deployment opportunities for Principle Power’s WindFloat® technology in Japan. This partnership brings the necessary leadership to unlock the large floating offshore wind potential in Japan and to build an industrialized WindFloat® supply chain.
“We are thrilled about this partnership as it will allow both Principle Power and Tokyo Gas to build on their individual strengths and jointly unlock the potential of floating offshore wind in Japan, through the development of large-scale commercial floating wind projects using our proven WindFloat® technology. With Tokyo Gas on-board we gain a trusted local partner, which is a key success factor in Japan. The investment by Tokyo Gas sets a strong foundation for our expansion in Asia, which is expected to lead global floating offshore wind development in the coming years. Closing this deal in the current business environment overshadowed by the Covid-19 pandemic, while a significant achievement on its own, demonstrates the very solid fundamentals of our industry in building a resilient clean energy economy”, said Principle Power CEO João Metelo.
“Tokyo Gas has been diversifying into power generation over the last few years and building a portfolio of renewable energy projects around the world. We have a strategic interest in offshore wind in order to expand our domestic and international power business and to lead to achieve net-zero CO2 emissions. And we strongly believe that floating wind holds a great promise for Japan. Principle Power, with its unparalleled technical expertise and established track record, is the perfect strategic partner for realizing our ambition to deploy large-scale commercial floating wind projects in Japan and globally,” said Tokyo Gas President Takashi Uchida.
Japan’s potential as a leading global market for floating wind has been recognized by Principle Power since it first began actively working on Japanese opportunities in 2013. Principle Power recently reaffirmed its commitment to the market as an independent technology company through the incorporation of Principle Power Japan G.K. and voting membership in the Japan Wind Power Association (JWPA). Principle Power is also a member of the Japan Offshore Wind Task Force (JOWTF), a joint initiative recently launched by JWPA and the Global Wind Energy Council (GWEC) to accelerate Japan’s offshore wind market.
“We are strongly committed to the Japanese market and will continue to deepen our relationships with offshore wind project developers and other stakeholders to move the industry forward”, said Principle Power CEO João Metelo.
Green Giraffe, specialist advisory firm focused on the renewable energy sector, advised Principle Power during this equity round process.
About Japanese market
According to Japan’s 5th Strategic Energy Policy, renewable energy is expected to comprise 22-24% of Japan’s total energy mix by 2030. The government anticipates that offshore wind will make a significant and important contribution to this target as Japan has strong fundamentals, including excellent offshore wind speeds, limited space for onshore development, and long coastlines. Furthermore, the Ministry of the Environment (MOE) estimates that over 80% of Japan’s total potential offshore wind resource of 1,900 GW is in water depths greater than 50 meters, necessitating the use of floating offshore wind solutions like the WindFloat®. Impending auctions for offshore site control further contribute to the growing interest from international players.
About Tokyo Gas
Tokyo Gas Co., Ltd. is Japan's largest provider of city gas is also Japan’s largest PPS with 2.8GW capacity, primarily in the Tokyo metropolitan area and surrounding Kanto region.
Tokyo Gas has launched a Group’s Management Vision “Compass2030” which embodies a target to expand its renewable power generation and trading in Japan and in global markets to reach the capacity of 5GW by 2030. Tokyo Gas will continue our pursuit to further transform our business as a leader in this new era of energy liberalization through our Gas, Power, and Services mission on a Global level while we continue to promote a low carbon society. We will utilize our knowledge and experience we have built from our 134-year history to not only meet, but to exceed the needs of our customers. We will continue to think outside the box to become Japan’s leading Energy Company.
About Principle Power
Principle Power is a global energy technology and services company. The Company’s proven and in-demand WindFloat® floating technology is unlocking offshore wind potential worldwide by enabling projects to harvest the best wind resource, irrespective of water depth or seabed condition. Principle Power acts as a trusted partner to developers, independent power producers, utilities and EPCs, supporting its customers throughout the entire lifecycle of their projects. With over 100 MW under construction and advanced development in Portugal, Scotland, and France, and a multi-GW commercial pipeline globally, Principle Power is the market leader in floating offshore wind technology.
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