TOKYO -- Japanese trading house Marubeni and Italian energy producer Enel Group have agreed to jointly develop power plants in Asia.
The two companies inked a memorandum of understanding and aim to win two orders by 2018. They plan to construct and operate fossil fuel and geothermal plants primarily in Indonesia, which is launching a large-scale plan to develop resources for electricity generation, and also in countries such as Myanmar and Vietnam.
The partnership will let Marubeni glean know-how on underground exploration from Enel, which is strong in the geothermal field.
Enel operates fossil fuel, geothermal and solar power plants in Europe, South America and Africa. The deal will help Enel cultivate Asian markets, which have been a challenge for the Italian company. Marubeni may be able to increase business participation in South America and Africa, two regions where it has had a weak presence.