Principle Power has secured an investment of over USD 22 million from Tokyo Gas to fund the company’s growth strategy and the continued commercialization of its floating wind technology.
In addition, the accompanying Cooperation Agreement signed by Principle Power and Tokyo Gas sets a foundation for creating commercial-scale deployment opportunities for Principle Power’s WindFloat® technology in Japan, the company said.
This partnership is said to bring the necessary leadership to unlock the large floating offshore wind potential in Japan and to build an industrialized WindFloat® supply chain.
The transaction follows Principle Power’s recent incorporation in Japan and strengthens the company’s position in this market.
A successful conclusion of this corporate fundraising, which is the largest equity round closed by Principle Power to date, represents an endorsement of the company’s business plan, a validation of the strong technical track record of the WindFloat® technology, and recognizes Principle Power’s global leadership position in the floating wind industry, the company said.
“We are thrilled about this partnership as it will allow both Principle Power and Tokyo Gas to build on their individual strengths and jointly unlock the potential of floating offshore wind in Japan, through the development of large-scale commercial floating wind projects using our proven WindFloat® technology,” said Principle Power CEO João Metelo.
”With Tokyo Gas on-board we gain a trusted local partner, which is a key success factor in Japan. The investment by Tokyo Gas sets a strong foundation for our expansion in Asia, which is expected to lead global floating offshore wind development in the coming years. Closing this deal in the current business environment overshadowed by the Covid-19 pandemic, while a significant achievement on its own, demonstrates the very solid fundamentals of our industry in building a resilient clean energy economy.”
Tokyo Gas joins Principle Power’s existing shareholder base, which includes several global energy and supply chain companies such as EDP Group, Repsol, Aker Solutions, and ASM Industries.
“Tokyo Gas has been diversifying into power generation over the last few years and building a portfolio of renewable energy projects around the world,” said Tokyo Gas President Takashi Uchida.
”We have a strategic interest in offshore wind in order to expand our domestic and international power business and to lead to achieve net-zero CO2 emissions. And we strongly believe that floating wind holds a great promise for Japan. Principle Power, with its unparalleled technical expertise and established track record, is the perfect strategic partner for realizing our ambition to deploy large-scale commercial floating wind projects in Japan and globally.”
Green Giraffe advised Principle Power during this equity round process.