May 27, 2011 (PRN): ITOCHU Corporation has reached an agreement with International Power (IPR), a leading independent electricity generating company, to acquire 33.3% of shares of 420 MW T-Power combined cycle gas turbine (CCGT) power plant of Belgium (T-Power) from IPR. The total project cost is estimated to be over 50 billion yen.

Through the clearance process of European Commission for IPR's merger with GDF Suez Energy International in this February, IPR was mandated to transfer its shares of T-Power to a third party during 2011, due to its dominating position in Belgium electricity market, and began negotiations with ITOCHU.

With the reputable track record and performance of NAES Corporation, a leading third-party provider of comprehensive operation and maintenance services and wholly-owned subsidiary of ITOCHU, two companies finally reached this agreement.

The power plant is scheduled to begin commercial operation in this June, with a long-term tolling agreement (15-year term, with option to extend for five years) concluded with the RWE Group, one of the largest utility companies in Germany.

The project is expected to generate stable income soon after the acquisition. According to the agreement between ITOCHU and IPR, NAES will be appointed as an operation and maintenance service provider for T-Power plant.

T-Power is the first IPP project in Belgium, where electricity market deregulation is progressing. Taking advantage of the first investment in CCGT power plant in Europe, ITOCHU continues to pursue further investment opportunities in this market. Because of the high energy efficiency of CCGT technology, the plant contributes to keep the environment green through less CO2 emissions.

[Wired by: PressReleaseNetwork.com]

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