OMNI Features｜Transition Bonds Issued by Kawasaki Set to Drive Advancements in Hydrogen Projects．Iberdrola and NBIM Boost Alliance with €2B Renewable Energy Investment / Barclays Establishes Energy Transition Group to Support Net Zero

Large-scale liquefied hydrogen carrier
（Photo source: Kawasaki）

｜Transition Bonds Issued by Kawasaki Set to Drive Advancements in Hydrogen Projects
Japan's Kawasaki Heavy Industries is set to issue transition bonds, with funds raised through public offerings of these bonds domestically within Japan to be used for projects related to the clean transport and storage of hydrogen and clean energy utilization of hydrogen. Specific solutions include liquefied hydrogen carriers, liquefied hydrogen storage tanks and hydrogen gas turbines for power generation.

Kawasaki announced its first transition bond issuance as a means of financing via the fund-raising framework "Master Framework Agreement (MFA) [1]," which the company established in November 2023. The bond issuance amounts to ¥10 billion ($68.55 million), with the issuance period planned for February 2024. The bond term is 5 years.

To note, transition bonds are bonds issued for the purpose of financing projects based on a long-term transition strategy aimed at reducing corporate greenhouse gas emissions. According to Kawasaki, through the provision of decarbonization solutions mentioned above, the company will promote the transition to carbon neutrality not only within its organization but among its customers as well, thus contributing to the early realization of worldwide carbon neutrality.

Last week, Kawasaki signed a joint venture agreement with Toyo Engineering Corporation, JGC Corporation and Chiyoda Corporation to enhance the front-end engineering design (FEED) execution for a liquefied hydrogen supply chain in development by Japan Suiso Energy (JSE).

｜Iberdrola and Norges Bank Investment Management Boost Alliance with €2B Renewable Energy Investment in Spain and Portugal.
Iberdrola and Norges Bank Investment Management (NBIM) incorporate an additional 1,300 MW in the Iberian Peninsula, to reach 2,600 MW. As of today, 674 MW of wind and solar has been added to the alliance, with the rest to be included in the coming months to reach a total capacity goal. The joint global investment commitment will amount to more than €2 billion over the next 3 years.

The 674 MW of new renewable energy capacity is in the development stage – 40% wind and 60% solar PV – across the Iberian Peninsula. Final negotiations on exclusivity are also taking place on including an additional 643.5 MW of operational and under development solar PV capacity to the alliance.

Both companies have joined forces to accelerate decarbonisation in the Iberian Peninsula, and the agreement could be extended to other countries in the future. Iberdrola will have a majority stake of 51% in the assets. Under the terms of the agreement, the valuation of 100% of the 674 MW now incorporated amounts to €627 million, excluding extra margins for asset management, provision of operation and maintenance services, as well as other corporate services.

｜Barclays Establishes Energy Transition Group to Support Net Zero Ambitions
British bank Barclays has announced it will establish an Energy Transition Group to support clients on their path to Net Zero. The group will provide expertise regarding the energy transition, from hydrogen and renewables to carbon capture and energy transition finance.

It will be comprised of industry sector specialists from within Barclays' global Natural Resources, Power, and Sustainable and Impact Investment Banking teams. Mike Cormier has been appointed Global Head of the Energy Transition Group and will report directly to Barclays’ Global Co-Heads of Investment Banking.

Barclays announced a 2050 Net Zero ambition and it has a target to facilitate $1 trillion of sustainable and transition financing between 2023 and 2030, encompassing the long-term green, social, transition and broader sustainable financing requirements of clients.

Note: [1] A Master Framework Agreement (MFA) is a contract between two entities that is meant to determine the terms and conditions of multiple future transactions.

Reference: Offshore Energy Biz｜Iberdrola｜H2View