In the United States, the federal government has set the environmental goals of achieving net-zero CO2 emissions in the electric power sector by 2035 and becoming carbon neutral by 2050. In August 2022, the Inflation Reduction Act (IRA) was passed in the United States, allocating $396 billion over a period of 10 years to support renewable energy-related initiatives. This is expected to further drive the growth of the renewable energy market. Solar power generation is expected to increase from 8% in 2024 to over 30% around 2050 in the power mix.
ITOCHU established TED in 2022, the first Japanese company capable of handling a full suite of development activities. TED is currently developing solar power plants and storage batteries with a total capacity of approximately 4 GW, equivalent to the capacity of four nuclear power plants. For the three projects (one in Arkansas and two in Illinois, totaling 333 MW), TED completed the necessary development work and the origination of the long-term power purchase agreements before completing the sale to Adapture Renewables, Inc. (hereinafter “Adapture”), a company affiliated with the LEGO Group.
Adapture will proceed with the construction of the projects, and the power supply to the consumer is planned in 2026. This will provide renewable energy equivalent to the annual energy consumption of approximately 72,000 households in the United States, contributing to an anticipated reduction of approximately 600,000 tons of the CO2 emissions per year.
In North America, ITOCHU also provides operation and maintenance services for approximately 1,400 solar power plants through its wholly owned subsidiary NAES Corporation (Headquartered in Washington). Going forward, ITOCHU will utilize group capabilities, and further advance our renewable energy business and contribute to the realization of a decarbonized society and sustainable local communities.
- *Completion of development refers to TED's completion of all necessary development services, including prospecting and acquisition of land, power grid connection, obtaining necessary permits and approvals, power plant design, equipment procurement, and the origination of long-term power purchase agreements. The construction and operation of the projects will be carried out by the acquirer, Adapture Renewables, Inc.
