Mitsubishi enters offshore undersea transmission operation business
Mitsubishi Corp. has acquired a 50 percent share of the Walney 1 offshore transmission assets
Tokyo, December 2, 2011 — Mitsubishi Corp. has acquired a 50 percent share of the Walney 1 offshore transmission assets. The acquisition was made from Macquarie Capital Group, and represents the first time for a Japanese company to be involved in operation of offshore undersea transmission cable business overseas.
Macquarie, following a tender for the license to operate the transmission cable run by Ofgem, the U.K. energy regulator and which commenced in July 2009, has owned the right to operate the Walney 1 offshore undersea transmission cable together with a fund managed by Barclays Infrastructure Funds Management. After the transaction between Macquarie and MC, MC and The BIFM Fund now each own 50 percent of Walney 1.
MC and BIIF will maintain and operate the undersea transmission cable, about 50 kilometers, which connects the offshore wind farm (total capacity 184 MW) located in the East Irish Sea to the Lancaster Coast and its transformers facilities. The two companies have a license to operate the project for 20 years.
The undersea transmission cable business will contribute towards a low carbon society, by transferring the clean electricity produced by the oversea wind farm in the East Irish Sea to various locations, and further expansion of this transmission operation business is expected to continue, together with the increase in the number of offshore wind farms.
Infrastructure business is a strategic focus area for MC, as highlighted in its Midterm Corporate Strategy 2012, announced in July 2010. MC will continue to expand its presence in the cable operation business, paying particular attention to new projects in the U.K.