Officials at Mitsui & Co. Ltd. have made an agreement with EDF EN Mexico, a subsidiary of EDF Energies Nouvelles S.A. (EDF EN), to participate in the 164MW Bii Stinu Wind Project, located in Oaxaca, Mexico.
Mitsui, through MIT Renewables Mexico (MITRE Mexico), its newly established subsidiary, will acquire 50% ownership in the common stock of Eoliatec del Istmo, who owns the Bii Stinu Wind Project. The total project cost amounts to approximately 5.1 billion pesos (approximately 35 billion yen).
EDF EN Mexico completed the development activities for Bii Stinu, and closed on the financing arrangements. The project, now in an advanced stage of construction, is scheduled to start commercial operation in June 2013. Power generated from the project will be delivered to various entities of five major private-sector corporations, based on power purchase agreements for 15 years.
EDF EN Group’s portfolio of renewable energy assets includes 4,200MW throughout 16 countries in Europe and North America. Its operation and maintenance services subsidiary extends its activities to more than 7,600MW of renewable power assets globally. EDF EN Mexico currently owns a 67.5MW wind farm in operation and a total of 460MW under construction and development in Oaxaca.
Mitsui is the No. 2 Independent Power Producer (IPP) in Mexico, participating in 2,922MW of gross generation capacity, including this project and six other gas-fired power plants in the country. With the participation in this project, Mitsui now holds approximately 5,916MW worldwide, on an installed net generating capacity basis, including projects under construction, out of which 439MW comes from renewable energy, accounting for approximately 7% of the above generating capacity.
In addition to power generation, Mitsui has presence in the operation of gas-pipeline project, effluent treatment service for PEMEX, sewage treatment service for the municipality, local gas distribution business, and LNG receiving terminal business. Through such various business activities, Mitsui has been accumulating its local expertise and expanding its infrastructure business in Mexico. Together with its knowledge about renewable energies carried out globally, Mitsui aims to hold a diversified power generation portfolio with a balanced fuel-mix, and to reduce carbon exposure with utilization of clean energy.