Japanese banks extend largest wind power loan

Six of Japan’s largest banks place a huge vote of confidence in the profitability of wind power.

Mizuho Corporate Bank, Development Bank of Japan and Sumitomo Mitsui Banking Corporation lead a six bank consortium that will extend a syndicated loan of about US$252 million by the end of this month to two Japanese companies to purchase Seajacks, a British company that builds wind power generators.

Marubeni Corporation and Innovation Network Corporation of Japan, an investment fund jointly established by the public and private sectors, announced in March they planned to buy Seajacks for US$882 million. Both companies aim to indirectly assist in the construction of floating wind power generators to generate electricity in power-short Japan.

Post-Fukushima Japan has seen the country devote more resources to wind power generation and other renewable energy sources.

Marubeni, Mitsubishi Heavy Industries Ltd., Shimizu Corporation and the University of Tokyo are currently conducting wind power experiments off Fukushima Prefecture.