Friday, November 1, 2013
Mitsui Takes 20% Stake In U.S. Power Plant
TOKYO (Nikkei)--Mitsui & Co. (8031) has acquired a 20% interest in a New York City power plant, aiming to gain experience with electricity markets ahead of the planned deregulation of the Japanese power sector.
Mitsui paid an undisclosed sum, likely around 10 billion yen, to the gas-fired power station's lead shareholder, French energy giant GDF Suez SA.
The 575,000kw plant in Astoria, Queens, began commercial operation in 2006. It is under contract through May 2016 to supply local utility Consolidated Edison. After that, the plant will sell directly to the electricity market.
Mitsui already sells power directly to electricity markets, as opposed to under long-term contracts, in such countries as the U.K. and Australia. It will draw upon the further experience gained from the American venture to develop its business in Japan and elsewhere.
(The Nikkei, Nov. 1 morning edition)