Obayashi Corp won bid to acquire 50% stake in Eastland Group

Obayashi Corp announces that it has acquired 50% of shares of Eastland Generation Limited (EG) with an enterprise value of more than US$294 million to make it an affiliate of the Company Obayashi Clean Energy New Zealand Limited (OCENZ). 

Obayashi Group is committed to carbon neutrality, actively participating in renewable energy projects in Japan and abroad. In Japan, the company has expertise in solar, onshore/offshore wind, biomass, and geothermal power. Additionally, in New Zealand, a joint venture was formed to build a CO2-free hydrogen plant using geothermal power.

The company is acquiring shares in EG, a New Zealand-based firm with a 63 MW capacity in geothermal, hydro, and other renewables. 

By sharing the expertise and networks developed in Japan and New Zealand, Obayashi Group propels the expansion of its renewable energy power generation through collaboration with EG. This partnership aims to secure essential renewable energy for the Company's anticipated growth in green hydrogen production in New Zealand. The acquisition of EG shares will be facilitated by the establishment of a wholly-owned subsidiary, OCENZ, locally. The investment in OCENZ represents 10% or more of the Company's capital, classifying the local subsidiary as a specified subsidiary.