Mitsubishi buys ‘near majority’ stake in Boston solar provider
Mitsubishi Corporation, Japan’s largest trading company, will purchase a “near majority” stake in Boston-based commercial solar provider Nexamp.
The transaction will be carried out by Diamond Generating Corporation (DGC), a wholly-owned Mitsubishi subsidiary in the US.
"We are pleased to execute this transaction with Nexamp," said Satoshi Hamada, CEO of Diamond Generating Corporation.
"Solar is one of America's fastest growing sources of new power generation and we intend to take a leadership position in the sector alongside our Nexamp team, which we consider among the very best in the industry."
Nexamp CEO Zaid Ashai has said that the deal with Diamond Generating will allow his company to expand and focus on constructing and operating commercial-scale energy projects around the US.
At present, DGC has ownership interest in 11 operating power and generating facilities in the US, as well as two facilities which are currently under construction. The company’s total output capacity is approximately 6,500MW, with net equity of 2,800MW.
"We are thrilled to have a strategic partner of Diamond Generating's caliber and experience as our lead investor," said Ashai. "Together with Diamond, we will accelerate our path to becoming an elite distributed-scale solar developer and operator in the US."
Image Courtesy of Nexamp
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.