Tokyo Gas Co., Ltd.
Regarding conclusion of capital and business alliance agreement with Renova and acceptance of third-party allotment capital increase ~Expanding collaboration in the renewable energy field~
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Tokyo Gas Co., Ltd. (President: Shinichi Sasayama, hereinafter referred to as “Tokyo Gas”) today announced that it is collaborating with Renova Co., Ltd. (President: Yosuke Kinami, hereinafter referred to as “RENOVA”) to develop domestic renewable energy power sources, procure and sell electricity, We have concluded a capital and business alliance agreement (hereinafter referred to as the “Agreement”) with the aim of expanding collaboration in the operation of biomass businesses. In addition, we have decided to underwrite the issuance of new shares worth approximately 17.8 billion yen through third-party allotment of capital by Renova. As a result of this acquisition, Tokyo Gas will become the second-ranking shareholder with approximately 13% of voting rights.
Tokyo Gas has set “transition to net zero CO2” in its group management vision “Compass2030,” and is aiming to achieve one of its main goals: 6 million kW of renewable energy power handled domestically and overseas by 2030. For this purpose, we are promoting the development and procurement of renewable energy sources such as solar, wind, and biomass. Through the conclusion of this agreement, Renova’s business development capabilities such as local consensus-building
capabilities, engineering capabilities, and project finance
structuring capabilities will be combined with Tokyo Gas’ strong power demand based on its approximately 3.8 million customer base. By combining our adjustment capabilities to balance supply and demand, we will promote further scale expansion and contribute to the realization of a sustainable society.
[Summary of business alliance]
1. Joint development of onshore wind power generation business ・ New investment and joint development in multiple domestic onshore wind power projects being developed by RENOVA
2. New power purchase contract conclusion and scale expansion ・ Signing of a power purchase agreement for an onshore wind power project jointly developed with Tokyo Gas as an investor.
・ Signed a power purchase agreement for the entire Reihoku-Amakusa onshore wind power project*1 (installed capacity 54,600 kW)
・Discussed adding approximately 100,000 kW to the power purchase agreement with Tokyo Gas for the domestic solar power generation project being developed by RENOVA
3. Collaboration in domestic biomass power generation business ・ Sharing knowledge and exchanging information regarding operations in biomass power plant operations and disaster countermeasures such as fires
・ Build a framework that allows for smooth fuel interchange and joint spot fuel procurement between the two companies
4. Collaboration in domestic grid storage battery business
・ Discussions regarding the utilization of charging and discharging capacity in the approximately 100,000 kW grid storage battery business being developed by RENOVA
Comment from Yosuke Kinami, Renova President and CEO
Our company and Tokyo Gas have previously built a relationship through biomass power generation projects and non-FIT solar power sales agreements (PPAs), but we have now entered into a capital and business alliance that will allow us to create even greater synergies. I’m very happy. As a specialist in renewable energy, we are developing multi-power sources such as solar, biomass, wind, geothermal, and hydroelectric power, as well as power storage plants.The total installed capacity of power plants in operation and under construction is 1,180,000 kW. We have expanded to. Through this agreement, we will further strengthen our efforts to develop renewable energy power plants and new decarbonization businesses, contributing to global decarbonization.
Comment from Kentaro Kimoto, Representative Executive Officer and Vice President, Head of GX Company, Tokyo Gas
Through this capital and business alliance with Renova, we will maximize the strengths of both Renova’s excellent development capabilities and Tokyo Gas Group’s extensive sales capabilities, and provide electricity derived from renewable energy to more customers. We are very pleased to be able to deliver this product and accelerate the decarbonization efforts of both companies.
Based on the recently announced “Tokyo Gas Group Carbon Neutral Roadmap 2050” *2, we will develop various initiatives, and this alliance will contribute to the steady expansion of renewable energy handling volume and further support in the future. We are confident that this will form the basis of our efforts.
-Reference- Overview of RENOVA
[Table 2: https://prtimes.jp/data/corp/21766/table/1062_1_8a4298cc3778132f33d5cb3b9382b7d6.jpg] *1: Onshore wind power generation project that RENOVA is currently constructing in Reihoku Town and Amakusa City, Amakusa District, Kumamoto Prefecture.
*2: Tokyo Gas Group Carbon Neutral Roadmap 2050 (announced on March 22, 2024) https://www.tokyo-gas.co.jp/news/press/20240322-03.pdf
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