Aker Offshore Wind and Mainstream Renewable Power Selected as Preferred Bidder to Partner Together in Floating Offshore Wind Project in Japan

Aker Offshore Wind and global wind and solar company, Mainstream Renewable Power (“Mainstream”) have together been selected as the preferred bidder to acquire an initial 50 percent stake in Progression Energy’s 800MW floating offshore wind project in Japan. The project is a well-formed early-stage development asset.

The two companies will now enter into exclusive negotiations with Progression Energy with a view to establishing a special purpose vehicle (“SPV”) in the coming weeks, to continue collectively developing the project. As a consortium, the three companies bring together unique capabilities and experience through Aker Offshore Wind’s offshore and floating expertise, Mainstream’s global leadership position in offshore wind development and Progression Energy’s global floating offshore wind development experience and strong position in Japan.

“In 2015, Progression recognized that floating offshore wind would become a major segment of the offshore wind industry. Since that time, Progression has originated floating projects in four markets globally,” said Chris Swartley, CEO of Progression Energy. “Japan has set a goal of zero emissions by 2050 with a strong focus on offshore wind. We are excited to bring Aker Offshore Wind and Mainstream Renewable Power on board and believe the two companies, working in partnership, bring a unique set of strengths that will be vital in helping us advance our project to FID.”

“Having already developed 20 percent of the UK’s offshore wind capacity currently in construction or operation, including the largest operational offshore wind farm in the world today, we are thrilled to be partnering with Aker Offshore Wind and Progression Energy to expand our growing offshore wind footprint in the APAC region, where we believe we can add incremental value through the decarbonisation of power that will have a positive impact on both the local economy and renewables development more broadly,” said Cameron Smith, Mainstream’s General Manager for APAC and Offshore.

“With our 180 years of industrial history and five decades in the offshore industry through the Aker group of companies, we have the capabilities and the competence to scale and industrialize floating wind in a sustainable way. By partnering with Mainstream Renewable Power and Progression Energy, we have a value proposition that is larger than the sum of its parts, which will position us well in our aim to develop offshore wind in Japan,” said Tom Selwood, CFO of Aker Offshore Wind.

Japan aims to expand offshore wind energy capacity to 10GW by 2030 and 30-45 GW by 2040, according to the Ministry of Economy, Trade and Industry (METI). Project areas for offshore floating wind will be put to auction for interested companies to submit their proposals.

About Aker Offshore Wind

Aker Offshore Wind Aker Offshore Wind is an offshore wind developer focused on assets in deep waters and specialized on floating energy systems. With global operations, the current portfolio consists of development projects and prospects located in Asia, North America and Europe. Aker Offshore Wind effectively deploys cost effective technologies from decades of offshore energy development. The company is majority-owned by Aker Horizons, an investment company dedicated to creating value and reducing emissions from renewable energy and decarbonization technologies. Aker Offshore Wind [AOW-ME] is listed on Euronext Growth in Oslo, Norway.   

About Mainstream Renewable Power

Mainstream Renewable Power is a leading pure-play renewable energy company with a global footprint. The company is focused on expanding its high-quality pipeline of more than 13 Gigawatts (GW) of wind and solar assets across Latin America, Africa, Asia Pacific as well as the global offshore wind sector. In May 2021, it closed an agreement for Aker Horizons to take a 75% equity stake in the company, enabling Mainstream to accelerate its global expansion plan to bring 5.5 GW of assets to financial close by 2023.

Mainstream has delivered more than 6.5 GW of wind and solar assets to financial close, and currently has over 1.4 GW (net) in construction across Latin America and Africa. In Chile, Mainstream’s wholly-owned 1.35 GW of fully contracted wind and solar assets are on track to reach commercial operation from 2021. In Africa, the company has delivered 842 MW of wind and solar assets into commercial operation in South Africa, and further, through its Lekela Power joint venture has 410 MW of wind assets in construction in Senegal and Egypt.

Mainstream is one of the most successful pure-play developers of offshore wind at scale globally.  It has successfully consented Hornsea One (1.2 GW), the largest operational offshore wind plant in the world today; and developed the Hornsea 2 project (1.4 GW)  before selling these projects and the entire Zone in 2015. Overall, it has developed and later divested projects representing 20% of the UK’s offshore wind capacity either in operation or under construction. 

Mainstream fully consented the Neart na Gaoithe offshore wind project in Scotland, 450 MW, currently under construction.  Mainstream’s Soc Trang 1.4 GW offshore wind development in Vietnam is one of South East Asia’s largest renewable energy developments.
Mainstream has raised more than EUR3.0bn in project finance to date and employs more than 340 staff across five continents.

About Progression Energy

Progression Energy is a floating offshore wind developer with approximately 4GWs of project assets across four markets.  Progression’s development approach is predicated on its early entry into markets that demonstrate a strong geo-economic need for large-scale floating wind projects, and a relationship-based development approach that initiates relationships with communities and stakeholders well before project development begins, and cultivates these relationships throughout project development, construction and operations.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements in Regulation EU 596/2014 and the Norwegian Securities Trading Act § 5-12. This stock exchange announcement was published by Ivar Simensen, Communications