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- Mitsui & Co., Ltd.
Corporate Communications Division
As reported on April 14th, 2005, Mitsui & Co., Ltd. (Mitsui) and the US independent power company Calpine Corporation (Calpine) have jointly invested equal equity into Greenfield Energy Centre LP (GEC). GEC entered into a 20-year Clean Energy Supply Contract (CES Contract) with the Ontario Power Authority (OPA) to provide clean energy from a new 1005-megawatt natural gas-fired power plant, which is currently under construction in the township of St. Clair located in south-western Ontario.
Greenfield Energy Centre LP signed and obtained CAD$650 million in non-recourse credit facilities on May 31, 2007. The credit facilities were arranged by lead arrangers, Tokyo Mitsubishi UFJ and the Bank of Montreal, with the first drawdown having been successfully made on the same day.
Under the CES contract with the OPA, GEC will operate a natural gas-fired combined cycle power plant, which is more environmentally friendly than other fossil fuel firing power generation facilities. GEC will sell electricity to the Ontario wholesale power market with revenues guaranteed by the OPA over a 20-year period. The construction is anticipated to be completed and commercial operation set to commence in the first quarter of next year.
The power market in North America (including Mexico) is one of the most important markets for Mitsui's electricity power business. Over recent years, Mitsui has been successful in obtaining several power plant construction contracts, and has also made extensive financial investments in other projects, expanding its portfolio into various types of power generation including gas, coal and wind. Mitsui intends to further strengthen its activity in the North American power market, which is expected to offer many opportunities, and continue to develop a wide-ranging power business.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.