ITOCHU : Announces Actions in the Renewable Energy Business in North America

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that it invested in the Grandview Wind Farm in the US state of Texas. It is the first time for ITOCHU to invest via Overland Capital Partners, L.P. (based in the US state of Delaware; hereinafter the "Fund"), which is an investment fund for renewable energy power generation assets in North America.
ITOCHU also announces that Tokyo Century Corporation (headquartered in Chiyoda-ku, Tokyo; Koichi Baba, President & CEO, Representative Director; hereinafter "Tokyo Century") has engaged in capital participation in the Fund and together with ITOCHU has set up a joint venture in the US state of Delaware (hereinafter the "JV") to commence the joint development of two solar power plant projects in North America.

Background

The United States federal government has set an environmental goal of achieving net zero CO₂ emissions in the power sector by 2035 and carbon neutrality by 2050. In August 2022, the Inflation Reduction Act (IRA) became law. It was decided that 396 billion dollars would be spent in the coming decade on support for renewable energy. Thus, it is expected that the renewable energy market will continue to grow.
ITOCHU established Tyr Energy Development Renewables, LLC (hereinafter "TED") as a company dedicated to renewable energy development through Tyr Energy, Inc., a wholly owned subsidiary of ITOCHU. It is currently involved in the development of 27 different solar power generation assets with an approximate total power output of 4 GW. ITOCHU also established Overland Capital Partners, L.P. in June 2023 as an investment fund for renewable energy power generation assets in North America. It expects to operate renewable energy projects worth around 2 billion dollars in terms of the total business size of its investment targets.

Investment in the first project through the Fund

The Fund invested in its first project, the Grandview Wind Farm (211 MW) in the US state of Texas, jointly with Tokyo Century. This wind farm has already received a long-term power sales contract and it expects to gain stable revenue over the long term. ITOCHU continues its efforts to procure money for the Fund. It provides institutional investors centered in Japan with good investment opportunities in the fast-growing renewable energy market in North America.

Joint development of solar power plants with Tokyo Century

The JV established by ITOCHU and Tokyo Century will take over two solar power generation assets under development by TED. One is in the state of West Virginia and the other is in the state of Iowa. Their total power output is 256 MW. In the future, they will develop these assets jointly. Their total power generation capacity is equivalent to the power consumption of around 50,000 standard US households. They are expected to reduce CO₂ emissions approximately 380,000 tons per year.

ITOCHU has put forth a new management policy, "The Brand-New Deal: Profit opportunities are shifting downstream," and is pursuing a policy of enhancing its contribution to and engagement with the SDGs through business activities" while listening to all stakeholders, including the market, society, and consumers. ITOCHU will continue to implement renewable energy projects to help realize decarbonized and sustainable local communities.

Diagram of investments involving the Fund

Diagram of the joint development project with Tokyo Century

About Tyr Energy

Tyr, a U.S. wholly owned subsidiary of ITOCHU, provides development, investment, operation and asset management for electric power facilities.

Company name	Tyr Energy, Inc. (abbreviated Tyr)
Representative	Garrick Venteicher
Head office	Overland Park, Kansas, the United States
Established	2002
Business description	Investment in and operation of power plants and asset management
URL	https://tyrenergy.com/

About TED

TED was established under the umbrella of Tyr Energy, Inc., a U.S.-based operating company wholly owned by ITOCHU. It is engaged solely in renewable energy development.

Company name	Tyr Energy Development Renewables, LLC(abbreviated TED)
Representative	Robert Shanklin
Head office	Overland Park, Kansas, the United States
Established	2022
Business description	Renewable energy-related businesses
URL	https://www.tedrenewables.com/

(Reference)Released on March 24, 2022.
ITOCHU Announces the Establishment of a Renewable Energy Development Company in North America
https://www.itochu.co.jp/en/news/press/2022/220324.html