Baker McKenzie advised Pattern Energy and Green Power Investment on project financing in Japan’s Ishikari, Hokkaido prefecture
Baker McKenzie advised Pattern Energy and Green Power Investment on project financing in Japan’s Ishikari, Hokkaido prefecture
The largest combined offshore wind and power storage facility is the first to be led by international sponsors
Baker & McKenzie (Gaikokuho Joint Enterprise) and Baker McKenzie, Seoul office, have advised Japan’s Pattern Energy Group LP and its affiliate Green Power Investment Corp (together with the project company as sponsors and the borrower), on the project financing of the 112 MW Ishikari Offshore Wind project. It is located approximately three kilometers from the shore of Ishikari Bay in Hokkaido, Japan.
While Pattern Energy is one of the world's largest privately-owned developers and operators of wind, solar, transmission, and energy storage projects, Green Power is among the pioneers in the renewable energy sector.
The financing facility was jointly arranged by MUFG Bank, Ltd, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, Shinsei Bank Limited, Mizuho Bank, Ltd, SOCIÉTÉ GÉNÉRALE and the Development Bank of Japan.
The project includes a battery storage component with a 100 MW/180 MWh capacity, making the integrated offshore wind and battery storage project globally one of the first for the energy industry. It will be Japan’s largest combined offshore wind and power storage facility, setting a key milestone in the country’s energy transition. It is also one of the few commercial-scale offshore wind projects that have achieved financing in the country and the first to be led by international sponsors.
The installation of fourteen 8.0 MW Siemens Gamesa wind turbines built specifically for offshore use has begun and the project is expected to begin commercial operation in December 2023. It will comprise a feed-in tariff for 20 years with Hokkaido Electric Power Network as the off-taker.
The enterprise was recognized by Project Finance International as the Asia Pacific Offshore Wind Deal of The Year in December 2022 and the Renewables Deal of the Year (Offshore Wind) by IJGlobal in March 2023.
The Baker McKenzie team was led by partners Shinichiro Kitamura and Tsutomu ‘Tom’ Kobayashi (Tokyo) and Jae-Hyon Ahn (Seoul). They were supported by project partner Ean MacPherson (Tokyo).
