Mitsubishi, SSE To Cooperate On Low-Carbon Energy Developments

16th Jul 2010 11:21

LONDON (Dow Jones)--Japan's Mitsubishi Heavy Industries Ltd. (7011.TO) and U.K. utility Scottish and Southern Energy PLC (SSE.LN) have agreed to work together on low-carbon energy developments that could lead to joint projects, investments and supply arrangements on technologies such as offshore wind, SSE said Friday. The agreement will also enable the companies to work together on smart grids and low-carbon vehicles, carbon capture and storage and high-efficiency power generation. "This agreement represents one of the most significant industrial partnerships to be established in Scotland since the heyday of North Sea oil--and low carbon energy represents Scotland's biggest economic opportunity since then," said SSE Chief Operating Officer of Colin Hood. The cooperation pact includes Mitsubishi subsidiary Mitsubishi Power Systems Europe Ltd., or MPSE. Earlier this year, MPSE signed a memorandum of understanding with the U.K. government on investing up to GBP100 million in an offshore wind-turbine research and development project. The deal is part of the U.K.'s big push to increase offshore wind capacity in addition to other low-carbon initiatives. The government is counting on offshore wind to provide a significant chunk of its European Union 2020 renewable energy targets. About GBP100 billion in investment is expected in U.K. offshore wind projects over the next decade. But even though the potential is huge, the sector is facing high development costs, an underdeveloped supply chain, technology and engineering challenges and a lack of grid infrastructure. -By Selina Williams, Dow Jones Newswires +44 207 842 9262; [email protected] (END) Dow Jones Newswires July 16, 2010 06:21 ET (10:21 GMT)