Sojitz acquires stake in Abu Dhabi water and power project
Dubai asset management and investment firm SHUAA Capital sells shares in MIPCO
12 May 2021 | Michael Marray

Japan's Sojitz Corporation has acquired a 20% stake in Mirfa International Power and Water Company (MIPCO), which owns and operates the Mirfa Independent Water and Power Project in Abu Dhabi. The Tokyo-based general trading company has acquired all  the shares in MIPCO held by SHUAA Capital, an asset management and investment firm in Dubai.

Abu Dhabi National Energy Company (TAQA), one of the largest integrated utilities companies in the EMEA region, owns 60% of the project. French energy company ENGIE, which has extensive experience in the development and operation of large-scale independent power producer/water and power producer projects around the world, holds 20%. The project consists of natural gas-fired power facilities with a generation capacity of 1,600MW and desalination facilities with a capacity of 52.5 million imperial gallons per day.

All electricity and water produced by the plant are sold to Emirates Water and Electricity Company, under a long-term power and water purchase agreement over the remaining contract period of around 22 years. Commercial operations began in late 2017.

Tokyo Stock Exchange-listed Sojitz was formed out the union of Nichimen Corporation and Nissho Iwai Corporation. As a general trading company, the Sojitz Group is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas. The broad range of sectors in which Sojitz operates includes those related to automobiles, plants, aerospace, medical infrastructure, energy, mineral resources, chemicals, foodstuff resources, agricultural and forestry resources, consumer goods, and industrial parks.

Sojitz has extensive experience in managing power projects in Japan and overseas. In the renewables sector, it is one of the partners in a Japanese consortium that owns a 27% stake in the Yunlin offshore wind project currently being built off the coast of Taiwan. Total of France recently acquired a 23% stake in Yunlin from German developer WPD.

SHUAA Capital is listed on the Dubai Financial Market. It is an asset management and investment banking platform, with assets under management of US$14 billion. The asset management segment of its business, one of the region’s largest, manages real estate funds and projects, investment portfolios and funds in the regional equities, fixed income and credit markets. It also provides investment solutions to clients, with a focus on alternative investment strategies.