SSE PLC (LSE:SSE) announced an agreement with Pacifico Energy, one of Japan's largest developers of renewable energy, to create a joint ownership company.
The pair will develop offshore wind energy projects in the Asian country.
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SSE Renewables will buy 80% of an offshore wind development platform from Pacifico Energy for US$208mln, of which US$30mln is deferred based on certain conditions.
Japan has offshore wind targets of 10GW by 2030 and 30-45GW by 2040 to rely less on imports and reduce its carbon footprint.
SSE said its renewables has the largest offshore wind pipeline across UK and Ireland at 7GW. It has a renewable output target of 30TWh a year by 2030, which it expects to surpass.
"Today is an exciting next step for SSE Renewables as we enter Japan which has huge ambitions for offshore wind deployment,” said Jim Smith, managing director of SSE Renewables.
“We want to help realise Japan's renewables ambitions and be a significant part of their offshore wind plans during the decades ahead, and we're looking forward to working with the new team, as well as with local communities and other stakeholders to realise the benefits of the offshore wind industry.”
Shares in SSE dipped 1% to 1,586p early on Wednesday.