Mitsubishi to launch $1 billion decarbonisation fund: reports

Mitsubishi Corp, Mitsubishi UFJ Financial Group and others will launch a decarbonisation fund with investment of a total of $1 billion in start-up companies, according to the Nikkei business daily.

Investments are expected to be made for European and US companies leading in floating offshore wind power and renewable aviation fuel technologies, the Nikkei reported.

The launch would follow a pattern of significant investment by Mitsubishi in the renewables space. In January, US solar-plus-storage developer Origis Energy announced that it had hired Mitsubishi Power Americas to deliver three utility-scale battery energy storage systems (BESS) with a combined capacity of 150 MW/600 MWh.

The BESS facilities will be co-located with three solar photovoltaic (PV) plants developed by Origis Energy in the Southeast US, where the company has already deployed more than 1.5 GW of operational and contracted projects. The three new projects should come online over the next two years.

Last month, Mitsubishi Corporation and other project sponsors signed a $692 million financing package for the Monsoon cross-border wind power project in Laos.

Once the wind farm has been constructed, it will sell electricity to Vietnam’s state-owned electric power company (Vietnam Electricity) under a 25-year power purchase agreement.

The Monsoon Wind Power Project is situated in southern Laos, and when completed will boast the largest installed capacity of any wind farm in Southeast Asia.

In addition to being the first cross-border renewable energy project in the ASEAN region, it will play a central role in the plan shared by the governments of Vietnam and Laos to transmit 5,000 megawatts of electricity from Laos to Vietnam by 2030.

Mitsubishi is involved in the project via investment through its wholly owned subsidiary Diamond Generating Asia, Limited.

Other partners for the project include the Asian Development Bank, Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation.