Power and Telecom Overview

Investment Focus:

• Renewable projects such as wind power and solar PV projects in the U.S. and Canada.

Investment Stage:
SCOA is seeking investments in renewable facilities that have long-term Power Purchase Agreement with electric utilities. We will invest in projects that are in the early to middle stage of development, shovel ready, under construction or operating.

Investment Size:
$50 million or above for equity per transaction. We will also consider leading very large equity investments in partnership with other institutional investors.

Ownership:

• Minimum 20% up to majority.

• Partner with the existing owners / developers

Strength:

• Strong balance sheet

• SCOA has certain taxable income from various large business operations in the US.

• Global network to bring relationship with suppliers and advanced services

• Expertise in power plant construction and operations.

Duke Energy and Sumitomo To Jointly Own Kansas Wind Farm

March 27, 2012 – SCOA took a 50% stake in two large-scale wind farms that Duke Energy Renewables is building in Kansas, the 131-megawatt (MW) Cimarron II Windpower Project in Gray County and the 168-MW Ironwood Windpower Project in Ford County.
 

Duke Energy Renewables, a commercial business unit of Duke Energy, and SCOA will complete construction of both wind farms later this year. Duke Energy Renewables will operate and maintain Cimarron II and Ironwood once they are in service, with SCOA actively involved in management of the projects.

“Forging this new strategic partnership with Sumitomo – a strong global company – helps Duke Energy Renewables manage its capital deployment effectively and fuel continued growth in its wind and solar power businesses,” said Duke Energy Renewables President Greg Wolf.

“We are pleased to join together with such a strong partner as Duke Energy,” said Masao Miyamoto, vice president and head of SCOA’s Power and Telecom Business. “This joint venture marks another step in the evolution of Sumitomo’s renewable energy business strategy, as we take a more active role in wind and other renewable projects. We will continue to look for opportunities where we can leverage our experience as a leading developer and a long-term strategic investor in high-quality renewable energy projects in the advanced development phase.”

The deal between Duke Energy Renewables and SCOA is expected to close in April. In addition, the companies are exploring opportunities to finance the cost of constructing and operating the Cimarron II and Ironwood wind projects. Both projects have long-term contracts in place to sell the electricity they generate. Kansas City Power & Light will purchase all of the electricity and associated renewable energy credits (RECs) produced by Cimarron II under the terms of a 20- year agreement. Westar Energy will buy all the power and RECs produced by the Ironwood wind farm through a 20-year agreement.

Sumitomo Expands Renewable Energy Portfolio as Joint Owner of World’s Largest Wind Farm in Oregon

APRIL 18, 2011--- In addition, SCOA has joined GE and developer and managing member Caithness Energy as owners of the world’s largest wind farm, the 845-megawatt Shepherds Flat wind project under construction near Arlington, Oregon. Sumitomo along with Google Inc, and a subsidiary of ITOCHU Corporation are investing approximately $500 million in the $2 billion project. Additional financial details of the transaction were not disclosed.

“The investment in the Shepherds Flat wind farm reinforces our commitment to ensuring a cleaner environment for all of us and future generations,” said Masao Miyamoto, Head of Power and Telecom Business, Vice President of Sumitomo Corporation of America. “We continue to look for similar opportunities where we can leverage our experience and know-how as a long-term strategic investor and work with strong partners on high-quality renewable energy projects in the advanced development or construction phase.”

“As originally envisioned, we are drawing on our ability to attract more private capital to the US wind market by adding partners to the Shepherds Flat project,” said Alex Urquhart, president and CEO of GE Energy Financial Services, which announced its investment in the Shepherds Flat project in December 2009. “Such projects boost energy security and supply, create jobs, and build on our partnerships with Sumitomo, Google, and ITOCHU.”

“The new investors contribute a wealth of energy expertise, innovation and strong financial profiles to the landmark Shepherds Flat wind farm project,” said Les Gelber, a managing director of Caithness Energy. The Shepherds Flat wind project stretches across 30 square miles of Gilliam and Morrow Counties in north-central Oregon. Once complete in 2012, the project will generate enough energy to supply more than 235,000 average US homes, and will avoid over 1.5 million tons of carbon dioxide per year, equivalent to the amount of carbon dioxide from approximately 260,000 passenger vehicles.

Wind turbine shipments to the site are expected to begin this spring. Construction involves not only the erection of 338 turbines, but development of 95 miles of roads and 167 miles of transmission lines. Caithness Energy has estimated that the project will inject $16 million annually of direct economic benefits into Oregon, and will employ 400 workers during construction and 35 during operation. The project will be the first wind farm in the United States to use GE Energy’s 2.5xl wind turbines, which are larger than its other models and use permanent magnet generators—turbine technology that improves efficiency, reliability and grid connection, helping to lower wind energy costs. The 2.5xl wind turbines for the Shepherds Flat wind farm are assembled at GE’s site in Pensacola, Florida. In addition to supplying the wind turbines, GE will provide operational and maintenance support to the project. Under three 20-year power purchase agreements, the Shepherds Flat wind farm will supply renewable energy to Southern California Edison, an Edison International (NYSE:EIX) company, helping California meet its renewable energy goals.

Sumitomo considers the renewable energy business as one of their main business areas and has extensive experience developing, operating and owning power generating facilities such as wind, biomass and solar business around the world. Participation in the Shepherds Flat project is Sumitomo’s second investment in the US. In 2009, Sumitomo acquired a 42.5% interest in the Stanton Wind project, a 120 MW wind power facility in Texas. Sumitomo owns and operates two wind power facilities in Japan and a 50MW wind facility in Chifeng, Inner Mongolia, China which is the largest wind energy market in the world. Sumitomo is a long-term investor in the power sector and has an approximately 5,300-net megawatt global power generation portfolio, including assets owned by SCOA.

Sumitomo has a strong global commitment to sustaining the environment by contributing to environmental businesses, like the development of renewable energy. Sumitomo will build upon its investment in Shepherds Flat and will continue to actively develop, construct and own wind and other renewable energy projects. The company is actively seeking attractive projects in the advanced development or construction phase in the US and Canada. With its global experience in developing, constructing and operating wind

SCOA recently acquired the Stanton Wind Project

July 13, 2009 - Sumitomo Corp, parent company of SCOA, has a strong commitment to sustaining the environment by investing in environmental businesses, like renewable energy; The Stanton wind project gives Sumitomo Corp entrance into the U.S. wind business market and SCOA intends to continue to develop its wind business in North America.

SCOA in conjunction with Sumitomo Corp purchased an interest in a 120 MW wind farm In Martin County, Texas, a 42.5% share in Stanton Wind Energy LLC from AIG Financial Products Corp., a part of American International Group. Inc. The Stanton wind project was developed and is managed and operated by Stanton Wind Holdings LLC, a 100% subsidiary of Invenergy Wind North America LLC, one of the leading wind developers in the U.S. The wind farm is located in Texas, the leading state in total operating wind capacity at 8,797MW.

The Stanton wind project utilizes 80 1.5MW General Electric turbines and has been in continuous operations since it commenced commercial operation in February 2008. The remaining share is held by GE Energy Financial Services and Invenergy group. This 120MW wind power facility, when compared to coal power plants, will contribute a reduction of approximately 800,000 tons of carbon dioxide emission annually and 20,000,000 tons over a 25-year span.

While a wind farm purchase helps secure SCOA’s foothold in the U.S. wind energy market, Sumitomo Corp already has two developed and operating wind farms in Japan, and one project under development in China. With this investment in Stanton, Sumitomo Corp for the first time enters into the U.S. market, where governmental incentives are encouraging renewable energy investments.

The renewable energy industry is expected to grow further with the support of the Obama Administration’s Green New Deal Policy. Among all other renewable energy sources, the wind power market is expected to expand in the future and has witnessed explosive growth since 2005, growing from a total installed base of 8.5GW to over 35GW at the end of 2009. According to Emerging Energy Research, an estimated 36GW capacity will be added between 2010and 2015 and the total installed capacity will be 200GW in 2025. The U.S. Department of Energy predicts that 20% of all electricity could come from wind power by 2030.

"Our goal is to create value by acquiring and developing, and then operating and managing wind power plants“ explained Masao Miyamoto, the Vice President of SCOA. SCOA desire a hands-on-role in the operations of the wind power plants to be the top 20 developer in U.S. in 10 years.

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