Mitsubishi Corporation (MC) is pleased to announce that in an effort to further expand its renewable energy businesses, MC has decided to acquire a 34% stake in Marena Renovables wind power project in Mexico with 396MW capacity which is the largest wind farm project in Latin America. The project, which will cost approximately JPY80 billion (US$1.0bn) in total, will be jointly developed by MC and our partners, Macquarie Mexican Infrastructure Fund and PGGM, in the Isthmus of Tehuantepec region located in the State of Oaxaca, Mexico. The development of the project will involve installing 132 units of wind mills across several tens of kilometers of the isthmus, and is expected to be complete in July, 2013. The power the wind farm generates will be provided to FEMSA and Heineken with 20-year power purchase agreements (PPAs)in place.
In Mexico, the country is putting forward an initiative to increase the total capacity of the power supply by 50% or up to 90GW by the year 2025. Out of the 90GW total capacity, 20GW is expected to be from renewable and MC expects to see more business opportunities to arise in the country going forward. Oaxaca State is the best place to set up a wind farm as strong wind from Gulf of Mexico runs through the region on its way out to Pacific at a speed of 8.5m per second which is equivalent to offshore winds. Each wind mill will carry a large-size turbine made by Vestas designed for offshore wind projects, and the annual power generation is expected to reach 1,500GW which equals 40% of the total wind power supplies in Japan. MC expects to further accumulate a range of operational experience through this project and, together with on-going 200MW wind project in the US, expects to translate to other wind farm business opportunities globally.
In its Mid-term Corporate Strategy 2012, MC has positioned infrastructure & global environment businesses as focus areas. In April MC will reorganize the company structure and create a new business group called Global Environmental & Infrastructure Development which seeks to expand into renewable energy businesses including this project as well as conventional Independent Power Producer(IPP), water, infrastructure and environmental businesses.