Cosmo Signs Joint Venture Agreement for Aomori Northwest (Aomori Seihoku-Oki) Offshore Wind Farm

March 15, 2021

Cosmo Energy Holdings Co., Ltd.

Cosmo Eco Power Co., Ltd. (President, Representative Director: Masayoshi Noji; “Cosmo Eco Power”), a wholly-owned subsidiary of Cosmo Energy Holdings Co., Ltd., (Representative Director, Group CEO: Hiroshi Kiriyama), and Hitachi Zosen Corporation (Representative Director, President and Chief Operating Officer: Sadao Mino; “Hitachi Zosen”) today announced that the two companies have signed a joint venture agreement with Acacia Renewables K.K. (“Acacia”), a wholly-owned subsidiary of Spanish electric utility and the world's number one producer of wind power, Iberdrola S.A. (“Iberdrola”). The conclusion of the agreement will see Acacia have a joint interest in Aomori-Seihoku-Oki Offshore Wind Godo Kaisha (“Aomori-Seihoku-Oki G.K.”), with Cosmo Eco Power becoming the largest investor. As is customary with this type of transaction, Acacia's participation in the venture is subject to third-party clearance and authorization under Japan's Competition Law.

Cosmo Eco Power has a proven track record in wind power generation projects in Japan and possesses advanced technological capabilities in the operation and maintenance (O&M) of wind farms. As such, the Company expects to increase the viability of its offshore wind power business through an alliance with Iberdrola, a company with expertise developed through many wind power generation projects around the world.

Aomori-Seihoku-Oki G.K. will submit a bid for the planned public offering based on the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities¹ for "Sea of Japan offshore Aomori Prefecture (southern side of the prefecture)," which has been designated as a “promising sea area” and boasts an assumed maximum power generation capacity of 600 MW. In doing so, the joint venture seeks to install and operate offshore wind farms and engage in the wholesale supply of electric power.

The Cosmo Energy Group has positioned its renewable energy business as a new core business in The Sixth Consolidated Medium-Term Management Plan, “Oil & New”, and is also planning other offshore wind farm projects around the country.²

“This is the first project where Cosmo Eco Power will be the representative company in the consortium,” commented Hiroshi Kiriyama, Representative Director and Group CEO of Cosmo Energy Holdings. “Iberdrola, which possesses advanced technology and experience in some of the worlds' largest wind farm projects, will join us in this venture. Their participation will ensure the business is more viable and bolster our competitiveness.”

“We have high expectations for the project. Cosmo believes that coexistence with local communities and economic promotion, especially in the fisheries sector, are essential in this project and certainly, for other offshore wind farm projects.” Kiriyama continued. “We will continue to communicate with all the parties involved to ensure their understanding regarding our wind power development efforts.”

Cosmo Eco Power, together with Acacia, will make steadfast preparations for the realization of this project in the Sea of Japan offshore Aomori Prefecture (southern side of the prefecture). Moreover, the Company is committed to long-term business expansion by planning and developing new wind farms, as it seeks to become a leading company in offshore wind power generation. As such, the entire Cosmo Energy Group is committed to achieving the SDGs.

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