Japan’s Itochu Announces US$2 Billion Renewable Energy Fund

Japanese trading conglomerate Itochu Corporation has established Overland Capital Partners, L.P. (the Fund), a fund to invest in renewable energy generation assets in North America.

In establishing the Fund, the Tokyo-based firm has been working with Sumitomo Mitsui Trust Bank, (SMTB), on the concept of the Fund business, investor solicitation activities, and other investment matters.

Other Japan-based investors Fuyo General Lease and Tokyu Land Corporation have decided to invest in the Fund, and the first closing has been held. Itochu said in a statement it will continue to solicit investors and plans to conduct a renewable energy project worth approximately US$2 billion through this fund.

The Fund will be managed by Tyr Energy, headquartered in Kansas, USA, a wholly owned subsidiary of Itochu as a General Partner (GP) through its newly established subsidiaries, and will invest in renewable energy generation assets in North America.

In collaboration with SMTB, Itochu hopes to provide institutional investors, mainly in Japan, with prime investment opportunities in the fast-growing renewable energy market in North America.

Itochu, through Tyr Energy, has developed and invested in more than 30 power plants in the United States, including eight investments in wind and solar assets. Tyr Energy, through its wholly owned subsidiary, Tyr Energy Development Renewable, (TED), is currently developing approximately 20 solar assets with a total capacity of 2GW.

TED has an integrated system for developing renewable energy power generation assets in-house, from the selection of land to the completion of development, including the signing of major contracts for the sale of electricity.

Itochu also provides operation and maintenance services for power plants through its wholly owned subsidiary NAES Corporation, the world’s largest independent O&M provider, which operates approximately 220 thermal power plants with a capacity of 50 GW, as well as approximately 1,400 solar power plants with a capacity of 2 GW.