GE, Itochu To Collaborate on Renewables Financing

Japanese trading house Itochu Corporation (ITOCF.PK) and GE (NYSE: GE) have entered into a collaboration to identify co-investment opportunities in renewable energy worldwide.

Itochu said its independent power holding company Tyr Energy Inc. is discussing co-invesment opportunities in wind power with the GE Energy Financial Services unit, including the CPV Keenan II Wind Power Project (152MW, Oklahoma) and another wind project in the United States for which Itochu and its affiliates are conducting due diligence.

Closing of Itochu’s investments in the Keenan II and other wind projects is expected in the third quarter of this year. For the Keenan II Wind Power Project, operations and maintenance will be contracted to NAES Corporation, another Itochu subsidiary.

Itochu and GE have collaborated on a handful of US energy project in the past.

Wind comprises nearly 80 percent of GE Energy Financial Services’ renewable energy portfolio. The portfolio includes equity investments in 47 wind farms with a total capacity to produce 6 Gigawatts of electricity, as well as loans to 36 wind farms totaling 1.3 Gigawatts.

GE Energy Financial Services holds a renewable energy investment portfolio of more than US $4 billion, with a target to reach US $6 billion this year. The investments span wind, solar, biomass, hydroelectric and geothermal power generation projects.

Itochu is actively developing new businesses areas including medical and health-related businesses, biotechnology, and clean technologies.

The firm is a major investor in US battery maker Ener1, and last year it acquired the majority stake in California-based solar integrator SolarNet.

Itochu reported annual revenues of more than Japanese Yen 3,416 billion in the fiscal year ending March 31, 2010. It operates over 400 subsidiaries and affiliates involved in textile, machinery, information and communications technology, aerospace, electronics, energy, metals, minerals, chemicals, forest products, general merchandise, food, finance, realty, insurance, and logistics services.