Global Solutions For Business
Linking Expertise and Resources
Diverse and Extensive Market Reach
New York, NY, July 28, 2009 - Sumitomo Corporation of America (SCOA hereunder) in conjunction with Sumitomo Corporation (SC hereunder, parent company of Sumitomo Corporation of America, headquartered in Tokyo) (collectively “Sumitomo” or “the Company”) is entering the U.S. wind energy business with the purchase of an interest in a 120MW wind farm in Martin County, Texas.
Sumitomo has purchased 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 is developed, 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. Stanton wind project utilizes 80 1.5MW GE turbines and commenced its commercial operations in February 2008, and has been in continuous operations. The remaining share will be 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 800,000t CO2 emissions annually and 20,000,000t over 25 years.
SC already has two developed and operating wind farms in Japan, and one project under development in China. With this investment, Sumitomo 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 have the most growth potential. Market volume is expected to expand in the future. At the end of 2008, cumulative total of 25GW wind power generation facility was introduced in the U.S., according to the American Wind Energy Association. This 25GW facility in the U.S. is the world’s highest wind generation capacity on record. The U.S. Department of Energy predicts that 20% of all electricity generation could come from wind power by 2030.
Sumitomo has a strong global commitment to sustaining the environment by contributing to environmental businesses, like the development of renewable energy. The wind power business is an area of strategic focus. The Stanton wind project gives Sumitomo entrance into the U.S. wind business market, and the Company intends to vigorously develop the future of wind business in North America.
