Back to 2006 listChubu Electric Raises Stake in Mexico Thermal IPP Project
April 20, 2006
Chubu Electric Power Co., Inc.
Chubu Electric is a founding partner, along with Mitsui & Co., Ltd. and the US firm Calpine Corporation, of Mexico-based Compañía de Generación Valladolid and is participating in a thermal IPP project through this company.
Chubu Electric and Mitsui & Co. have recently acquired Calpine's 45% interest in this enterprise, thereby increasing their respective shares by 22.5% each. As a result, Chubu Electric and Mitsui & Co. now each own a 50% interest in the Mexican firm.
< Investment stakes >
| Investing company | Before additional acquisition |
After additional acquisition |
| Chubu Electric Power Co., Inc. | 27.5% | 50.0% |
| Mitsui & Co., Ltd. | 27.5% | 50.0% |
| Calpine Corporation | 45.0% | -- |
Compañía de Generación Valladolid will supply wholesale electric power based on a 25-year electric power purchase agreement with Mexico's energy authority Comisión Federal de Electricidad. The company is building a 525MW natural gas combined cycle (composite thermal) power generation plant which it plans to start operating in June of this year. The plant is located in Valladolid, Yucatan, Mexico.
Chubu Electric is already engaged in overseas power generation projects and environmental initiatives, including a thermal IPP project in Thailand and another Thailand project to generate power from rice chaff. During the current five-year period through FY2010, however, Chubu Electric will place even greater emphasis on expanding its overseas power projects.
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