Principle Power has secured an over US $22 million investment from Tokyo Gas, a major Japan-based energy player, to fund the company’s worldwide growth strategy and the continued commercialization of its floating wind technology.
The transaction follows Principle Power’s recent incorporation in Japan and dramatically strengthens the company’s position in this globally important market.
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.
Tokyo Gas further enhances 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 brings expertise in development, engineering and operation of large energy and infrastructure projects around the world.
In addition, the accompanying Cooperation Agreement signed by Principle Power and Tokyo Gas sets a strong foundation for creating commercial-scale deployment opportunities for Principle Power’s WindFloat technology in Japan. This partnership brings the necessary leadership to unlock the large floating offshore wind potential in Japan and to build an industrialized WindFloat supply chain.
“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. 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,” said Principle Power CEO João Metelo.
“Tokyo Gas has been diversifying into power generation over the last few years and building a portfolio of renewable energy projects around the world. 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,” said Tokyo Gas President Takashi Uchida.
Japan’s potential as a leading global market for floating wind has been recognized by Principle Power since it first began actively working on Japanese opportunities in 2013. Principle Power recently reaffirmed its commitment to the market as an independent technology company through the incorporation of Principle Power Japan G.K. and voting membership in the Japan Wind Power Association (JWPA). Principle Power is also a member of the Japan Offshore Wind Task Force (JOWTF), a joint initiative recently launched by JWPA and the Global Wind Energy Council (GWEC) to accelerate Japan’s offshore wind market.