The joint venture is the next step in on-going collaboration between the two companies, which began a year ago with an initial Memorandum of Understanding (MoU). To date, project successes range from low carbon investment initiatives in European cities and investment in air source heat pumps, to the research of low carbon projects to be funded by the purchase of emission reduction units through the Kyoto Protocol.
Arup head of energy strategy John Roberts said: “75% of all energy is currently consumed in cities, and increasing urbanization is pushing this number up. Municipal and provincial governments globally have been charged with achieving energy and carbon-reduction targets such as the European Union’s 20:20:20 requirement. But many do not have the experience, resources or capital to develop and implement climate change action plans or low carbon retrofit programmes. This partnership will help governments at all levels achieve their energy and carbon reduction targets.”
Within the joint venture, Arup’s role will be to identify potential projects, plan and develop them technically and commercially to the point where an investment can be made. Mitsui will work to identify projects and contribute to identifying other partners, commercial management and financial structuring. The two firms will share venture risks and reward.
Mitsuhiko Kawai, chief operating officer of Mitsui’s financial markets business unit, described the arrangement between Mitsui and Arup as the ‘perfect fit’ for delivering low carbon projects.
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