Vestas and Mitsubishi Heavy Industries, Ltd. (MHI) have closed the agreement to expand their partnership in sustainable energy. By closing the agreement, Vestas has acquired MHI’s shares in the MHI Vestas Offshore Wind (MVOW) joint venture, while MHI has acquired 2.5 per cent in Vestas and will be nominated to a seat in Vestas’ Board of Directors.
The 50-50 joint venture, MVOW, was formed in 2014 and supplies wind turbines to developers of offshore farms. Vestas expects it to generate revenues of Euro 1.4 billion ($1.65 billion) this year. Bert Nordberg, Chairman of the Board of Vestas, said “Welcoming offshore back is the beginning of a new chapter in Vestas’ history, offering strong growth opportunities towards 2030 and further acceleration of the deployment of renewable energy. Since we divested our offshore business back in 2013, we have had a great partner in Mitsubishi Heavy Industries, which we were fortunate to visit a couple of weeks ago, and it is with great pride that we today embark on a new journey together.”
With the agreement approved by relevant authorities and closed by the involved parties, the integration of Vestas and MHI Vestas Offshore Wind can now accelerate. The two companies aim to complete the organisational integration by February 1, 2021. Henrik Andersen, Group President and CEO of Vestas, said, “Today, offshore wind is officially a full part of the Vestas family again, and I look forward to creating a strong team that can establish the technological, operational and cultural platform to make us a leader in offshore like we already are in onshore. The immediate priority for us will be to integrate offshore into our operating model, which together with a leading offshore product platform and continued focus on execution will enable us lead the industry overall and accelerate the energy transition”.
The two companies said they will continue setting up a joint venture for wind energy in Japan, as well as explore the partnership within green hydrogen.
REGlobal’s Views: The acquisition comes at a time when offshore wind is receiving increasing attention from governments around the world seeking to lower emissions and meet climate-change targets.