Green Giraffe advises the shareholders of Flotation Energy on the Company’s 100% sale to TEPCO Renewable Power

10 November 2022

Green Giraffe is delighted to announce that it acted as exclusive financial adviser to the shareholders of Flotation Energy (the Company) on the disposal of their shares in the Company

On 1 November 2022, TEPCO Renewable Power, Inc. (TEPCO RP), the renewables arm of Tokyo Electric Power Company Holdings, Inc. (TEPCO Holdings), Japan’s largest electricity company, entered into an exclusive agreement to acquire 100% of Flotation Energy.

Flotation Energy is a world leading offshore wind developer established by current Chief Executive, Lord Nicol Stephen and Chief Technical Officer, Allan MacAskill in 2018, on the back of the successful development of Kincardine, the world’s largest floating offshore wind farm to date.

The transaction is a major milestone both for Flotation Energy and TEPCO RP. The acquisition is TEPCO’s first major venture into offshore wind markets in the UK and overseas and follows an initial investment in the TetraSpar floating foundation demonstration project in Norway and Denmark in February 2021. TEPCO RP is a long-standing operator of renewable energy plants and by far the largest in Japan, where it operates over 9 GW of hydropower capacity. Flotation Energy will benefit from TEPCO RP’s experience and resources to deliver more than 12 GW of commercial scale fixed and floating offshore wind farms in the UK, Ireland, Australia, Taiwan and Japan, with plans to expand in many more key markets.

Green Giraffe delivered its full suite of sell-side M&A services to the shareholders of Flotation Energy, including providing strategic and financial structuring advice, preparing the marketing materials, conducting a detailed valuation exercise, sounding a comprehensive list of relevant investors, and negotiating the transaction documents. Green Giraffe’s in-depth knowledge of the offshore wind sector and unparalleled track record in floating offshore wind was supplemented by DC Advisory’s intimate access to Japanese investors and expertise in cross-border transactions.

Lord Nicol Stephen, CEO & Co-founder of Flotation Energy, said: “The Green Giraffe team were outstanding from the start to finish of this transaction. Flotation Energy could not have hoped for advisers with a better understanding of our business and the fast-growing global market in floating offshore wind. Their expertise was critical to the success of the deal.” 

Flotation Energy is based in Edinburgh, Scotland, and has been a significant contributor to building a strong offshore wind industry in the UK and beyond. Flotation Energy has a growing project pipeline of offshore wind projects with more than 12 GW in the UK, Ireland, Taiwan, Japan and Australia, and plans to expand into many more key markets. The expertise of the Flotation Energy team lies in the project and engineering management of large infrastructure projects. Flotation Energy have developed their own projects but also recognise the benefits of collaboration and working in partnership with other developers to deliver proven, cost-effective solutions.

TEPCO Renewable Power (TEPCO RP) is a wholly owned subsidiary of Tokyo Electric Power Company Holdings, Inc. (“TEPCO Holdings “), the largest power company in Japan. In April 2020, TEPCO RP assumed TEPCO Holdings’ renewable energy generation business and became an independent company dedicated solely to renewable energy. For many years, TEPCO RP has used a firm business model that covers everything from the planning and construction to the operation & maintenance of hydroelectric and wind power generation facilities. The total capacity of the company’s hydroelectric, wind, and solar power facilities is approximately 9.9 GW. TEPCO RP also owns 30% of the TetraSpar floating foundation demonstration project in Norway and Denmark.

Green Giraffe is a specialist advisory firm focused on the energy transition. Launched in 2010 and with offices in Boston, Cape Town, Hamburg, London, Madrid, Paris, Singapore, Sydney and Utrecht, we offer bespoke financial advice, market intelligence and development services in all renewable and energy transition technologies. In October 2019, Green Giraffe entered a joint venture agreement with Daiwa Securities, whereby Daiwa took a 50% stake in the company. Green Giraffe retains its well-known brand in the energy transition market with DC Advisory (Daiwa’s M&A practice) and Green Giraffe working together to bring their complementary strengths and skills for all clients.