Etrion Corp., the Toronto-listed solar developer backed by the Lundin family, is set to announce a deal to partner with Hitachi Ltd. to develop projects in Japan.
Japan's energy focus has shifted quickly to renewables in the wake of the Fukushima nuclear disaster. Hitachi High-Technologies Corp., a Hitachi subsidiary, and Etrion have a relationship from projects they have done together in Italy, which led to the project in Japan, said people familiar with the transaction.
Japan is already one of the world's biggest solar markets, and the government is seeking to triple the amount of the country's supply from renewables by 2030.
According to the agreement, which is expected to be announced soon, the plan is to jointly seek projects that reach as much as 100 megawatts of solar power, which Etrion and Hitachi can build. The first plant could come as soon as this year.
Etrion is part of the Lundin family's focus on greener projects. The family has a long history in mining and energy.
The company teamed with Total SA on a big project in Chile. With this latest initiative, it will now have operations in Asia, Europe and the Americas.
The plan is to be cash flow positive by 2015, which would enable the company to start paying dividends.
The stock has been a solid performer, jumping in the wake of the Total deal. It's risen from a 52-week low of 15 cents to a close of 64 cents on Monday.