Toyota Tsusho : Joins First Repowering Project -Switch to Gas-fired Power Generation Will Lower Environmental Impact-
January 12, 2015 at 09:17 pm EST
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Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it will participate in the construction and operation of the Salem Harbor Power Plant, a capacity of approx. 700MW natural gas-fired power generation project in the City of Salem, Massachusetts, the United States, which is located outside of Boston. Toyota Tsusho will contribute 12.5% of the equity capital and Highstar Capital IV, a U.S. infrastructure investment fund ("Highstar Capital"), will contribute the remaining 87.5% of equity capital for the plant. Footprint Power Salem Harbor Holdings LP, the development sponsor for the project ("Footprint Power"), will retain an equity interest in the project and will remain active in its ongoing management.
Salem Harbor Power Plant will be a re-powering project involving the replacement of an aging coal- and oil-fired power generation plant with a new natural gas-fired power generation plant. Since 2012, Toyota Tsusho has been working with Footprint Power as a development partner for this project. By switching from coal and oil to natural gas and adopting highly efficient combined cycle power generation, the new plant will reduce the burden on the environment. Plant construction is scheduled to begin in 2015 and completion and the start of commercial operation are slated for 2017. Power generated through the plant will be supplied through North American wholesale electric power market ISO-NE (an independent system operator in New England). In the U.S., the construction of gas-fired power generation plants are expected to help stem a decline in power output caused by the decommissioning of aging coal-fired and nuclear power plants. The Salem Harbor Power Plant will support the stable supply of electric power in the New England region as a new, highly efficient power source.
Toyota Tsusho views North America as a major market for its electric power business. The company is promoting the stable supply of electric power in North America with various project schemes. The Salem Harbor Power Plant will be the third project for Toyota Tsusho that is selling electricity through deregulated electricity market, following the CPV Shore gas-fired power plant project launched in 2013 and the CPV St. Charles gas-fired power plant project launched in 2014.
Toyota Tsusho will continue to promote environmentally friendly power generation in the market through energy efficient systems by using natural gas and by expanding its renewable energy portfolio.
Project Description
Project
Salem Harbor Power Project
Overview
Construction and operation of a gas-fired power generation plant and sale of power through the PJM wholesale power market
Location
Salem, Massachusetts, U.S.A.
Ownership
Toyota Tsusho 12.5%, Highstar Capital 87.5%, Footprint Power
Capacity
700MW
Commercial Operation
2017
Reference
Company name
Highstar Capital
Location
New York, U.S.A.
Establishment
2000
Business description
The Highstar Capital provides investment advisory services in the energy, environmental services and transportation sectors. Since 2000, the Highstar Capital has managed approximately $7 billion for its managed funds and co-investors. In August 2014, the Highstar Capital joined Oaktree Capital Management, L.P., a global investment management firm with more than $93 billion in diversified assets under management as of September 30, 2014.
Employees
Approx. 40
Company name
Footprint Power Salem Harbor Holdings LP
Location
New Jersey, U.S.A.
Establishment
2009
Business description
The company was formed by longtime power-industry executives to identify opportunities for the re-powering or re-purposing of older fossil-fuel fired generation facilities.
Toyota Tsusho Corporation is a diversified group organized around 7 areas of activity:
- production of metal (24.1% of net sales): steel bars, flat steel, wires, pipes, aluminum, etc.;
- manufacturing of chemical products and electronic components (23.2%);
- production of automobile components and accessories (12.4%). Toyota Tsusho Corporation also offers logistics services and tire assembly services;
- manufacturing of industrial machines equipment and gas (10.9%);
- sale of vehicles (7.9%): private cars, vans, heavy vehicles and motorbikes/scooters. The group also sells spare parts and offers after-sales services;
- manufacturing of food products (7.7%);
- other (13.8%): sale of insurance products (life, health, accident and house), accommodation services, sale of medical equipment and services, sale of textile products and office supplies.
Net sales are distributed geographically as follows: Japan (30.8%), China (14.4%), Africa (13.7%), the United States (9.8%) and other (31.3%).
TOYOTA TSUSHO CORPORATION 
