Marubeni buying majority stake in Oak Creek wind

Escondido, Calif.-based wind project developer Oak Creek Energy Systems said today that Marubeni, one of Japan's largest general trading companies, would acquire a majority stake in Oak Creek.

Under the deal, Marubeni plans to invest $16.6 million for a 55.4 percent stake in Oak Creek, with the California company also signing an agreement to become Marubeni's exclusive wind energy development partner for North America.

"Our investment will help Oak Creek fulfill its development obligations resulting from the groundbreaking 1,550 megawatt Southern California Edison power purchase agreement and aggressively pursue its plans for development of wind projects throughout North America," said Kenji Natori, general manager of the New Technology and Renewable Energy department of Marubeni.

Oak Creek said it has more than 5,000 MW of wind energy projects in its development pipeline in the U.S. Southwest, including the 1,550 MW Alta Wind Energy Center project in Kern County, Calif.

Oak Creeks power purchase agreement with Southern California Edison for Alta Wind was announced in late 2006.

"This deal represents a unique combination of international expertise and capital engaging in the California and the North American markets," said Niels Rydder, chairman and CEO of Oak Creek.

The Power division of Marubeni, one of 11 business segments in the group, has investments in 18,523 MW of domestic and overseas Projects.