Etrion and Hitachi High-Technologies receives project financing for Japanese solar facility from Sumitomo Mitsui Trust Bank
Written By: Stratton Report
November 21, 2016
On November 21, Etrion Corporation announced a project finance agreement with Sumitomo Mitsui Trust Bank, Limited for the construction of the 13.2-MW DC Komatsu solar project in Japan.
According to Etrion, the project will sell power via a 20-year PPA with the Hokuriku Electric Power utility and will receive a price of ¥32 per kWh ($0.32 per kWh).
Etrion will own 85.1% of the Komatsu project, and Hitachi High-Technologies will own the remaining 14.9%. The total project cost will be financed approximately 83% through project debt from SuMi Trust in Japanese Yen with a tenor equal to the construction period plus 19 years of operations. The remaining 17% of total project cost will be funded pro-rata by Etrion and Hitachi High-Technologies.
Marco A. Northland, Etrion’s Chief Executive Officer, commented:
“I am delighted to announce the signing of the $33 million project financing for our 13.2 MW Komatsu project, our fourth utility-scale solar project in Japan. We continue to deliver new solar projects through our unique partnership with Hitachi High-Tech in Japan, which is the market with the highest returns for Etrion. Once we close the previously announced sale of our Italian assets we will be in a very strong financial position to further accelerate our growth in Japan.”
Per the company, construction will begin in February 2017, and the solar project is expected to be fully operational by the second quarter of 2018.
The solar power plant will be built on 30.5 hectares of leased land and will connect through the Hokuriku Electric Power Co., Inc.
The project was developed under a 2012 development agreement between Etrion and Hitachi High-Technologies Corporation. Komatsu is the fourth solar project to be built under this partnership with a target to reach 300 MW either under construction or shovel-ready by 2018.