Sep. 11, 2023

Sumitomo Corporation Group Establishes Renewable Energy Development Company in the United States

Sumitomo Corporation, through Sumitomo Corporation of Americas (hereinafter referred to as “SC Group”) and together with Advantage Capital (AC) — a U.S. impact investment firm that is also working on the development of the renewable energy business — has established Perennial Renewables LLC (PR), a limited liability company that develops the renewable energy projects with a focus on solar power generation.

PR will leverage AC’s development team expertise on site control and interconnection and the Group’s strength in project finance arrangement to simultaneously develop multiple renewable energy projects. At the outset, PR will focus on completing the development of AC’s current portfolio, consisting of 2+ GW of solar generation across six states, and going forward plans to add new renewable energy projects into the development pipeline. The solar projects in the current portfolio are located mainly in the Midwest and Northeastern United States, including a concentration in the states of Indiana, Illinois, Arkansas, and New York. The completion of construction and commencement of operations for the most advanced projects is scheduled for the second half of 2024.

Sumitomo Corporation Group’s Renewable Energy Business Aimed at Achieving Carbon Neutrality

SC Group has set a long-term goal of achieving carbon neutrality within its business operations by 2050, and a medium-term goal of renewable energy net ownership generation capacity reaching 5 GW or more by 203. As part of SC Group’s endeavor to achieve sustainable growth with society, it is globally developing renewable energy generation by way of wind, solar, geothermal, and hydroelectric power and at present has a net owned generation capacity of approximately 2.1 GW (as of June 2023). SC Group has focused on hands-on business investments and has established a global organizational structure to support its electric power business group-wide.

In the United States, SC Group has achieved investment and operation of seven renewable energy businesses since its first investment in the onshore wind power generation business in 2009. Currently, through U.S. power development and investment company Perennial Power Holdings, Inc. (Perennial Power), the Group’s wholly owned subsidiary established in 2002, SC Group maintains five renewable energy projects, mainly onshore wind power generation (approximate total generation capacity: 640 MW, net owned generation capacity: 313 MW), and aims to expand the net ownership generation capacity to 1 GW by 2030.

SC Group will continue to work on the development of outstanding renewable energy businesses by adding more projects into the pipeline while simultaneously developing multiple projects from early stages. The company will contribute to the achievement of a sustainable society by using its expertise gained through existing businesses and expanding its renewable business in the United States.

■Business summary

Investment Type Development of U.S. Renewable Energy Projects
Name of limited liability company Perennial Renewables
Shareholder composition Sumitomo Corporation Group: 50%, Advantage Capital: 50%
Total generation capacity Approximately 2 GW (As of August 2023)
Development areas States of Indiana, Illinois, Arkansas, New York, and others

■Overview of Advantage Capital

Established 1992
Location State of New York, United States
President Steven Stull
Description of business Advantage Capital Renewables is the renewable energy platform of leading impact investment firm, Advantage Capital, which works to bring businesses, jobs and technologies to communities that have historically lacked access to investment. Advantage Capital Renewables finances and develops high-impact utility-scale solar and battery storage projects that expand access to clean energy solutions.
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