MIGHTY MITSUBISHI BETS NEW ENERGY

Mitsubishi’s green power gamble; Japan’s largest industrial group Mitsubishi wants to become a leading global player in renewable energy
Rajesh Chhabara, April 3, 2009 (Climate Change Corp)

"Mitsubishi group is a complex conglomerate of over 500 companies engaged in a wide range of industries…In the energy segment, Mitsubishi is considered one of the global leaders in nuclear energy systems and conventional power plants. The group has a significant presence in the renewable energy market that includes manufacturing wind turbines and solar panels. Bio-fuel plants, water turbine plants and geothermal plants are other areas where the group has a growing presence...

…[T]hree related developments in the recent years have influenced Mitsubishi’s green strategy…[First] was basically a threat to its conventional fossil fuel power plant business on account of growing global warming concerns…[Second] was a combination of opportunities presented by the promotion of renewable energy by European governments and a growing clean energy demand in the US…[Third] was Mitsubishi’s home country Japan taking a leadership role in the fight against global warming…"

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"Though Mitsubishi companies are engaged in a range of green energy businesses…the group is banking on solar energy for future growth…Photovoltaic power, Mitsubishi’s main strength, has a huge potential in Europe…[T]he company recently made headlines when it said that it has achieved the world’s highest energy conversion efficiency rate of 18.6% for multi-crystal silicon cell technologies. The company already boasts the highest energy conversion rate of 97.5% for its Photovoltaic Inverters…

Mitsubishi Heavy Industries Ltd., which has over $33 billion in annual revenue, manufactures thin-film photovoltaic modules, geothermal power plants, wind turbine generators and water turbine plants…MHI set up Bulgaria’s first wind farm in a joint venture with the Bulgarian engineering firm Ion Limited…So far, the company has been selling 1-3 MW models, mostly focusing on the US market. Massive orders from the US wind power generation developers prompted the company to triple the annual wind turbine production capacity from 400 MW in 2007 to 1200 MW in 2008 and plans to increase it to 2000 MW by 2010…"

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"The third company Mitsubishi Corporation, with over $43 billion in annual revenue, is Japan’s largest trading company and has been instrumental in marketing renewable energy products…The company’s strategy includes acquisitions and joint ventures mainly in Europe though expansion plans include the US, the Middle East and South-east Asia. The company also plans investing in manufacturing of poly-silicon and silicon wafers, the main raw materials for photovoltaic cells, to ensure a steady supply…

"But Mitsubishi has its baggage of controversies which may affect its image as a champion of clean energy and sustainability. Germany-based Oekom Research, a leading rating agency for sustainable investments, gave a ‘not-prime’ C- rating to Mitsubishi last year for lack of transparency regarding the integration of environmental considerations into products and services…Mitsubishi has the technological prowess and financial muscles to become a significant leader in the renewable energy market in Europe where it has its eyes set. But it may have to work harder to come clean on its own sustainability performance."