Marubeni Participates in South Korea's Largest Wind Power Generation Project

Jun. 3. 2005
Marubeni Corporation

Marubeni is participating in South Korea's largest wind power generation project. Marubeni has taken a stake in a venture company incorporated by Unison, a major South Korean manufacturer of bridge construction equipment, to construct and operate the wind power station in Gangwon-Do in northeastern South Korea. The station will have an output of 98,000 kW and the total cost of the project will be about JPY 16 billion. In September 2004, Marubeni participated alongside Unison in a 39,600-kW wind power generation project in Gyeongsangbuk-do in southeastern South Korea. This makes the project in Gangwon-Do the second that Marubeni has undertaken with Unison. Commercial operation is planned to begin in September 2006.

Marubeni is providing 30 percent of capital for Gangwon Wind Power, a venture company already incorporated by Unison, and is installing 49 windmills supplied by VESTAS Wind System A/S of Denmark prior to September 2006. In South Korea, wind power stations with a total output of about 60,000 kW are now in operation. The country is planning to construct wind power stations with a total output of 200,000 kW in the future, with the output of each station being up to 40,000 kW. Therefore, the wind power station constructed in Gangwon-Do is the largest in South Korea. After the start of its operation, the power station will supply electric power to Korea Electric Power Corporation (KEPCO) via wholesale markets for 15 years under Government’s special price purchase program. Since South Korea adopts the Clean Development Mechanism (CDM), it plans to consider trading in certified emission reductions (CERs) enabled through wind power generation.

Eurus Energy Japan Corporation, Japan’s largest wind power generation company, plans to provide 10 percent of the capital for the abovementioned venture company. Eurus Energy Japan operates the venture company and is considering trading in CERs alongside Marubeni.

Marubeni regards its overseas IPP projects as a core business for the whole company. In April 2005, it established Marubeni Power Development Corporation located in Chiyoda-ku, Tokyo to be exclusively engaged in the development and operation of IPP projects. The corporation plans to increase its power-generating capacity to 4,000,000 kW over the next couple of years and, this fiscal year, it will allot about JPY 30 billion to the development of and investment in promising transactions. The investment targets include the generation of renewable energies such as wind power generation, and encompass this project.

Profile of the venture company

Company : Gangwon Wind Power Co.,Ltd.

Capital     : 37,862 million won
          (30% Marubeni, 35% Unison, 10% Eurus Energy Japan Corporation)

Output    : About 98,000 kW (2,000 kW x 49 turbines)

Sales Target: Korea Electric Power Corporation
         (Price determined according to Government special price purchase   

Sales Period: 15 years

Korean company: Unison Co., Ltd.

Location  : Cheonan City, Chungnam-Do, Korea

Representative: Chairman Lee Jeung-Soo

Date of Incorporation: September 1984 (KOSDAQ : November 1993)

Capital     : 9 billion won

Main Business: Manufacture of bridge construction and road equipment, development of South Korea's first system of domestically produced wind power

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