Tokyo Gas adds to Japan’s renewables with Renova stake

Japanese utility Tokyo Gas agreed on 1 April to buy a stake in domestic renewable power developer Renova to enhance their renewable power sector business.

Tokyo Gas plans to purchase 13.04pc of Renova for ¥17.82bn ($117.4mn), aiming to complete the deal on 17 April. Renova following the investment plans to accelerate its solar power development, which is outside the country's feed-in-tariff scheme, onshore wind power including the 54.6MW Reihoku Amakusa wind power project, solar and wind power in Asia, stationary storage batteries, as well as solar power and battery ventures overseas.

Tokyo Gas and Renova also signed a capital and business alliance agreement to co-operate on biomass power projects by examining fuel spot purchase schemes and sharing knowledge to secure stable operation of such power plants.

Renova expects to take advantage of Tokyo Gas' power offtake network, as well as its capacity to adjust power supplies and demand. It also aims to expand the operating capacity of its renewable power assets further from its current 1,180MW.

Tokyo Gas and Renova have joined forces on operating the 75MW Ishinomaki Hibarino biomass-fired power generation plant, which started commercial operations on 28 March. Tokyo Gas holds a 34pc stake in the project, while Renova owns 38pc. Domestic renewable power developer United Purpose Management has 15pc and financial firm Mizuho Leasing the remaining 13pc.

By Nanami Oki