Sumitomo Corporation Group Establishes Joint Venture to Develop Renewable Energy Projects in Virginia; Expanding Over 1.5 GW of Solar Power Projects in a Key IT Infrastructure Hub and Data Center Cluster

Rhea-AI Summary

Sumitomo Group has formed a joint venture with CEP Solar, to develop renewable energy projects in Virginia. The partnership aims to commercialize a portfolio of solar and battery storage assets exceeding 1.5 GW, with construction expected to start in late 2025. This venture aligns with Virginia's Clean Economy Act, which mandates 100% clean energy by 2050, and addresses the growing demand for renewable power in the state's significant data center market.

The collaboration combines CEP's local expertise with SC Group's project finance capabilities to develop multiple projects simultaneously. This partnership enhances SC Group's ability to meet the increasing demand for renewable energy in Virginia, building on their existing projects in the Midwest and Northeastern U.S. Sumitomo aims to supply more than 5 GW of renewable energy by 2030 as part of its goal to achieve carbon neutrality in its business activities by 2050.

Positive

• Joint venture formed to develop over 1.5 GW of solar and battery storage projects in Virginia
• Construction of renewable energy projects expected to commence in late 2025
• Partnership enhances SC Group's ability to meet growing demand for renewable energy in a key market
• Aligns with Virginia's Clean Economy Act mandating 100% clean energy by 2050
• Sumitomo aims to supply more than 5 GW of renewable energy by 2030

Negative

• None.

TOKYO, Oct. 15, 2024 /PRNewswire/ -- Sumitomo Corporation (Head Office: Chiyoda-ku); Representative Director, President and Chief Executive Officer: Shingo Ueno), through Sumitomo Corporation of Americas (hereinafter referred to as "SCOA") and Perennial Power Holdings, Inc. (hereinafter, Perennial), a subsidiary of SCOA (collectively "SC Group") announced today that it has formed a joint venture with CEP Solar, LLC (Head Office: Richmond, Virginia; Co-Founders: Tyson Utt and Richard Wright; hereinafter, "CEP"), to deliver clean energy projects across the Commonwealth of Virginia. The new investment enables both Perennial and CEP to commercialize its portfolio of solar and battery storage assets which exceeds 1.5 GW, with construction expected to commence starting in late 2025. The company will seek to originate new projects to support one of the fastest growing power markets in the United States.

The Virginia Clean Economy Act of 2020 (VCEA) is transforming Virginia's electric grid to 100% clean energy by 2050, requiring large-scale deployment of renewable generation resources. In addition to robust policy support, Virginia hosts the largest data center market in the world, with up to 70% of the world's internet traffic passing through its data centers each day. * As a critical hub of IT infrastructure, this significantly increases the demand for new renewable power to meet net zero emissions targets.

The joint venture will leverage CEP's local development expertise and extensive network, combined with the strengths in project finance arrangement of the SC Group, to undertake simultaneous development of multiple projects across Virginia. Building on SC Group's early-stage projects in the Midwest and Northeastern U.S. launched in 2023, this partnership with CEP will further enhance SC Group's ability to respond to the rapidly growing demand for renewable energy in Virginia.

"CEP's goal is to enable Virginia's successful transition to a clean economy by developing the highest quality solar and storage projects through long-lasting relationships," said Tyson Utt, Co-Founder of CEP. "This partnership with Perennial aligns with our core values and will accelerate our ability to deliver a scale-diversified portfolio, which consists of both solar and battery storage projects, providing long-term economic and environmental benefits for our partnering communities, landowners, and customers across the Commonwealth."

"Our partnership with CEP provides Perennial with greater geographic diversity and exposure to highly attractive end markets, and further accelerates our efforts to expand renewable footprints in the United States," said Takuya Yoshizawa, President, Perennial Power Holdings. "We're excited about the new capabilities and market expertise the team brings to our platform."

To achieve carbon neutrality in its business activities by 2050, Sumitomo Corporation is working to establish businesses that serve as the foundation for a sustainable energy cycle by promoting fuel conversion, expanding renewable energy supply, and advancing CO2 capture, storage and utilization. In the renewable energy business, Sumitomo Corporation aims to supply more than 5 GW by 2030.

In the United States, SC Group has achieved investment and operation of seven renewable energy businesses since its first investment in the onshore wind power generation business in 2009. Currently, through Perennial, SC Group maintains five renewable energy projects, mainly onshore wind power generation (approximate total generation capacity: 640 MW, net owned generation capacity: 313 MW), and aims to expand the net ownership generation capacity to 1 GW by 2030.

* From data published by the Loudoun County Economic Development Department

About Perennial Power
Perennial Power is a wholly-owned subsidiary of Sumitomo Corporation of Americas, established in 2002 to invest in key infrastructure projects to contribute to the development and sustainability of local economies and communities.  Perennial's renewable investments and operations include seven renewable energy businesses since its first investment in the onshore wind power generation business in 2009. The foundation of Perennial's investment approach is to provide long-term contributions and inclusive solutions to stakeholders through Sumitomo's unique value proposition. www.pph-americas.com.

About CEP Solar
CEP Solar, LLC, a subsidiary of Commonwealth Energy Partners, LLC, is a clean energy company based in Richmond, Virginia that partners with landowners, communities and customers to originate and manage best-in-class solar and storage projects across Virginia that deliver long-term economic and environmental benefits for the Commonwealth.
www.cepsolar.com.

About Sumitomo Corporation of Americas
Established in 1952, Sumitomo Corporation of Americas (SCOA) is the largest subsidiary of Sumitomo Corporation. Headquartered in New York, SCOA has offices in 9 major U.S. cities, four offices in Canada and two in Mexico. As an integrated business enterprise, the firm has emerged as a major organizer of multinational projects, an expediter of ideas, an important international investor and financier, and a powerful force for distribution of products and global communications through its network of offices worldwide. Its core business units include Energy, Automotive, Social Infrastructure, Agri-food and Life Science, Construction and Transportation Systems, Real Estate, Mineral Resources and Energy Innovation.

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SOURCE Sumitomo Corporation of Americas

FAQ

What is the capacity of the renewable energy projects Sumitomo Group plans to develop in Virginia?

Sumitomo Group plans to develop over 1.5 GW of solar and battery storage projects in Virginia through its joint venture with CEP Solar,

When is construction expected to begin on Sumitomo's renewable energy projects in Virginia?

Construction on Sumitomo's renewable energy projects in Virginia is expected to commence in late 2025.

What is Sumitomo 's renewable energy supply goal by 2030?

Sumitomo aims to supply more than 5 GW of renewable energy by 2030 as part of its sustainability goals.

How does the joint venture in Virginia align with local clean energy goals?

The joint venture aligns with Virginia's Clean Economy Act of 2020, which mandates a transition to 100% clean energy by 2050, requiring large-scale deployment of renewable generation resources.

What is Sumitomo Group's current renewable energy capacity in the United States?

Sumitomo Group currently maintains five renewable energy projects in the U.S., mainly onshore wind power generation, with an approximate total generation capacity of 640 MW and a net owned generation capacity of 313 MW.