UK-based renewables firm SSE Renewables will, together with the Japanese renewable energy developer Pacifico Energy, form a joint venture firm that will explore offshore wind project development in Japan.
As part of the agreement, SSE Renewables will acquire an 80% interest in an offshore wind development platform from Pacifico Energy.
The deal will see a transfer of up to 20 Japan-based employees from Pacifico Energy to the newly created offshore wind company who will be complemented by SSE Renewables employees.
"The move to enter Japan’s growing offshore wind market will help support the further expansion and diversification of SSE Renewables’ longer-term growth pipeline," said SSE Renewables. The company is currently leading the construction of the 3.6GW Dogger Bank offshore wind farm in the UK, which will, once online, be the world's largest.
As for Japan, the country plans to have 10GW of installed offshore wind capacity by 2030 and 30-45GW by 2040. The targets are supported by a commitment to run regular offshore wind auctions for support.
According to SSE Renewables, the new company will target the acquisition of a number of early-stage offshore wind development projects geographically spread across Japanese waters, with the potential to progress to deliver multiple GWs.
"These early-stage projects are expected to use a mixture of fixed and floating technology and are working towards being selected for future auctions," the company said.
The two most advanced projects have secured grid access and advanced local stakeholder engagement has been undertaken.
"By combining the significant local preparatory development work undertaken by the experienced Pacifico Energy team with SSE’s expertise in developing, constructing and operating offshore wind farms, and balance sheet strength, the new entity will progress its 10GW portfolio of early stage development opportunities, with the most advanced aiming to enter bid rounds before or in the mid-2020s," the UK-based firm said.