Pacifico Energy Co., Ltd. (Headquarters: Minato-ku, Tokyo; President: Daiki Matsuo; hereinafter referred to as "Pacifico Energy") is one of the world's largest offshore wind power development companies and is a subsidiary of the UK-listed SSE Group. We have concluded and completed an agreement with SSE Renewables (Headquarters: Perth, Scotland; Managing Director: Jim Smith) to jointly establish a new company to promote the offshore wind power development business in Japan. The investment ratio will be 20% by the Company and 80% by SSE Renewables.
The main details of this transaction are as follows.
- Jointly established SSE Pacifico Co., Ltd., a new offshore wind power generation company, to promote development projects in Japan.
- Up to 20 employees from Japan-based Pacifico Energy will be transferred to SSE Pacifico K.K., and the remaining personnel will be supplemented by employees from SSE Renewables.
- Mike Seaton, Director of Development at SSE Renewables, appointed CEO of SSE Pacifico Co., Ltd.
- Hiroki Matsuo, President and Representative Director of Pacifico Energy, will continue to be involved in the business as a director of the new company, and Masaru Karasawa, Chief Operating Officer, will become Senior Vice President and Chief Operating Officer of the new company, overseeing development projects.
- A number of early-stage offshore wind projects to be acquired are dotting Japan's waters and could reach multi-gigawatt-scale capacity. These early-stage projects are envisioned to combine fixed and floating technologies and aim to be selected for future auctions.
- The two most developed projects have secured transmission lines and are making progress in building relationships with stakeholders in the developing regions.
SSE Pacifico K.K. will combine the extensive on-site pre-development work carried out by the experienced Pacifico Energy team with SSE's offshore wind farm development, construction and operation expertise and strong financial position. By doing so, we will develop a portfolio of early-stage development projects spanning 10 GW. We aim to enter tender rounds in the early to mid-2020s for the most developed projects. The new company will also continue full and open cooperation with local communities and local governments, aiming for optimal integration of offshore wind farms into the local environment.
The SSE Group has a clear strategy to create sustainable value for shareholders and society by developing, building, operating and investing in the power infrastructure and businesses needed to transition to net zero. . The strategy focuses on net-zero, renewable energy and regulated power grids with common skills and competencies in developing, constructing, procuring, financing and operating world-class technologically advanced power assets. We focus on businesses that have the potential to grow significantly in the future. Other businesses held by the SSE Group complement this core low carbon business.
SSE Renewables has 7 GW of offshore wind pipelines in the UK and Ireland, the largest in the region. It also currently leads the construction of the largest number of offshore wind farms in the world. It has set a target of 30 terawatt hours (TWh) of renewable energy output capacity per year by 2030, but is expected to exceed the target. It also has a clear ambition to install at least 1 gigawatt of new capacity annually in the late 2020s.
In the past year, SSE has begun to bring SSE Renewables' offshore wind development, construction and operation know-how to international markets that it sees as a growth opportunity. Markets where SSE Renewables is actively developing offshore wind projects include Spain, Portugal, Denmark, Poland and the newest addition is Japan. The acquisition could lead to further development in the East Asian market, where up to 140 GW of offshore wind capacity is expected to be installed by 2050.
Hiroki Matsuo, President and CEO of Pacifico Energy, said:
“We have high expectations for our partnership with SSE, which boasts experience in the construction of one of the world's leading offshore wind farms and a track record of winning bids from public tenders. This partnership will enable us to fulfill our various commitments to local stakeholders until the end of the project. Utilizing the business development know-how that Pacifico Energy has cultivated thus far and its regional network, we will work with SSE to reduce the cost of offshore wind power generation in Japan, promote the spread of safe and secure renewable energy, and reduce the burden on the public. I would like to do my best to contribute to the reduction."
Jim Smith, Managing Director of SSE Renewables, said:
“For SSE Renewables, we are very pleased to announce the signing of this contract in Japan, which is committed to the introduction of offshore wind. A great local partner with complementary Japanese market know-how, track record and knowledge in bringing our operational expertise to Japan, SSE Renewables will contribute to Japan's renewable energy goals. We would like to play an important role in Japan's offshore wind power projects for decades to come, and we hope to contribute to the offshore wind power industry in cooperation with the newly established joint venture, local communities and other stakeholders. We look forward to 2020. It will be a crucial time for SSE as it continues to grow to deliver on its low-carbon power infrastructure strategy, including tripling its renewable energy capacity by 2030."
Rothschild & Co. acted as financial advisor to SSE Renewables on this transaction, and Freshfields Bruckhaus Deringer LLP acted as legal advisor. KPMG acted as financial advisor and Baker & McKenzie LLP acted as legal advisor to Pacifico Energy.
About SSE Renewables
SSE Renewables is a leading renewable energy developer, owner and operator in the UK and Ireland with a portfolio of approximately 4GW of onshore wind, offshore wind and hydropower. Part of FTSE-listed Scottish and Southern Energy (SSE), its strategy is to advance the transition to a net-zero future through the development, construction and operation of world-class renewable energy assets is to
SSE Renewables is currently leading the construction of the largest number of offshore wind farms in the world. Total Energies (France), in addition to Doggerbank Wind Farm (North Sea), the world's largest offshore wind farm with a capacity of 3.6 gigawatts, in joint ventures with Equinor (Norway) and Eni (Italy) a joint venture with Seagreen Offshore Wind Farm (Firth of Forth), Scotland's largest offshore wind farm with a capacity of 1.1 gigawatts, is currently under construction. It also has the region's largest offshore wind development pipeline in the UK and Ireland at approximately 7 GW, of which approximately 1.5 GW is already under construction and approximately 800 MW has been agreed.
SSE Renewables has nearly 2 GW of onshore wind capacity in operation, with over 1 GW of capacity under development. The 1,459 MW hydropower portfolio includes 300 MW of pumped storage and 750 MW that can be adjusted to meet demand. We also operate offshore wind farms on behalf of our partners, including joint ventures at two sites, Beatrice and Greater Gabbard, with a combined capacity of 487 MW.
SSE, the parent company of SSE Renewables, is a Principal Partner of the UK Government for the COP26 UN Climate Summit in November 2021.
About Pacifico Energy Corporation
Pacifico Energy is one of the largest developers of renewable energy power generation projects in Japan. We start the development from the initial stage of the project, and then consistently conduct investment, construction and asset management. Since our founding in September 2012, we have worked on 15 solar power generation projects in Japan, with a total output of approximately 1,300 MW.
In the offshore wind power generation business, we started development activities in 2017 and have built a pipeline of approximately 10 GW projects. Pacifico Energy aims to achieve global environmental protection and Japan's carbon neutral goals by taking on the challenge of realizing grid parity for renewable energy, developing locally rooted power sources that can coexist with the region, and long-term stability with a view to becoming the main power source. We are committed to responsible operation as a power source.
Press Inquiries
SSE Renewables Public Relations Ashton Consulting Limited
Telephone: 03-5425-7220 E-mail: SSEJapan@ashton.jp
Pacifico Energy Contact
Pacifico Energy Co., Ltd.
Public Relations
Phone: 03-4540-7830 E-mail: info@pacificoenergy.jp
