- Sumitomo Corporation partners with CEP Solar to develop over 1.5 GW of solar power and energy storage projects in Virginia.
- The partnership supports Virginia’s Clean Economy Act, which mandates a 100% clean energy grid by 2050 and leverages CEP’s local expertise and Sumitomo’s project financing capabilities.
- Sumitomo Corporation aims to achieve carbon neutrality by 2050 and plans to supply over 5 GW of clean energy by 2030, further solidifying its presence in the US renewable energy market.
Sumitomo Corporation has formed a joint venture with CEP Solar, LLC, through its subsidiary, Sumitomo Corporation of Americas (SCOA), and Perennial Power Holdings, Inc. This partnership aims to develop renewable energy projects across Virginia, targeting over 1.5 gigawatts (GW) of solar power and energy storage capacity.
Construction will begin in late 2025. This initiative reflects the growing momentum in the US renewable energy sector, especially in Virginia, rapidly becoming a key hub for IT infrastructure and data centres.
Virginia’s energy transformation drives the Virginia Clean Economy Act 2020 (VCEA). This law mandates a 100% clean energy electric grid by 2050. Achieving this goal requires significant deployment of renewable energy resources. Virginia also hosts the world’s largest data centre market, processing up to 70% of global internet traffic daily. The demand for renewable energy plays a crucial role in meeting the state’s carbon neutrality targets.
The joint venture will capitalise on CEP’s local development expertise and robust network. Sumitomo’s project financing capabilities will further enhance this collaboration. Together, they can develop multiple projects simultaneously across Virginia, better addressing the region’s increasing renewable energy needs.
Since 2009, Sumitomo Corporation has significantly invested in renewable energy in the United States. The company has established seven renewable energy ventures, primarily in onshore wind. Through Perennial, the group manages five renewable projects with a combined generation capacity of about 640 MW and a net owned capacity of 313 MW. The goal is to increase this net capacity to 1 GW by 2030, solidifying its presence in the US renewable market.
CEP Solar’s co-founder, Tyson Utt, stated, “CEP’s goal is to enable Virginia’s successful transition to a clean economy.” He emphasised building high-quality solar and storage projects through lasting relationships. Utt noted that the partnership with Perennial aligns with CEP’s values and will help deliver a diverse portfolio of projects benefiting communities, landowners, and customers across the state.
Takuya Yoshizawa, president of Perennial Power Holdings, stressed that the partnership offers greater geographic diversity and access to attractive markets. He expressed excitement about the new capabilities and expertise this collaboration brings. This partnership will further accelerate efforts to expand renewable energy footprints across the United States.
Sumitomo Corporation has set ambitious targets for its sustainability initiatives. The company commits to achieving carbon neutrality in its operations by 2050. It aims to create a sustainable energy cycle through fuel conversion and expanding renewable energy supply. Additionally, it focuses on advancing CO2 capture, storage, and utilisation technologies.
By 2030, Sumitomo plans to supply over 5 GW of clean energy within the renewable energy sector. This partnership with CEP Solar marks a significant step toward strengthening its renewable energy portfolio and supports energy transition initiatives in Virginia and beyond.
In conclusion, this joint venture represents a strategic move for Sumitomo and CEP Solar. This collaboration underscores the increasing importance of renewable energy in Virginia and the US. As the state continues to lead the way in energy transformation, this partnership will contribute significantly to achieving its clean energy goals.