Singapore-based Equis Pte Ltd announced that it has sold two biomass projects in Japan to natural gas provider Tokyo Gas Co Ltd.
The company said it has executed binding documentation for the sale of the 51.5 MW Fushiki Manyofuto Biomass Power Plant in Toyama and the 75 MW Ichihara Yawatafuto Biomass Power Plant in Chiba to Prominet Power Co Ltd, a wholly-owned subsidiary of Tokyo Gas.
“The transaction is expected to close in September 2020,” Equis said in a statement on Wednesday.
The Toyama Project and Ichihara Project are 100%-owned by Equis Asia Fund 2 and the divestment to Tokyo Gas forms part of a planned exit of assets from various Equis’ funds, the company said.
In line with the business’ focus as Asia Pacific’s leading infrastructure asset developer, Equis said it has established Equis Development Pte Ltd, a Singapore headquartered company, through which all future equity investments will be made by Equis.
Equis is no longer raising new private equity funds and is now focused on greenfield development of high-quality renewable energy, waste processing and recycling infrastructure assets in developed markets across the region, it added.
“We are excited to be a part of Tokyo Gas’s mission to achieve ‘net-zero CO2 emissions’ by 2050. The Equis Development team has a proven track record of developing sustainable biomass projects in Japan, which provide stable renewable baseload power, minimise emissions and generate significant opportunities for local communities.” Japan-based Equis Development Managing Director Lance Comes said.
Earlier this month, Equis Development announced that it has raised 100 billion won ($85 million) with Hana Financial Investment to construct one of the largest waste-to-energy platforms in South Korea.
It was reported that Equis Development plans to invest over$4 billion in renewable energy projects across the Asia Pacific over the next two years. Its target markets include developed Asia Pacific markets such as Australia, South Korea, Japan, and Taiwan.
Equis sold its subsidiary Equis Energy to US-headquartered GIP in January 2018. Following the acquisition, Equis has restructured its entire asset and capital management model and has brought its partners and staff under a single corporate entity, Equis Development.