Sumitomo Corporation of America (SCOA) along with its parent company Sumitomo has purchased a 25% ownership stake in the 550MW Desert Sunlight Solar Farm.

Located east of Palm Springs in the California desert the project is currently under construction and marks the company’s first foray into the US solar market.

Sumitomo purchased a part of the stake held by GE Energy Financial Services with NextEra Energy Resources being the other owner of the farm developed by FirstSolar

The facility will generate enough energy to power about 165,000 homes and reduce 300,000mt of greenhouse emissions per year.

Electricity produced at the Desert Sunlight farm will be sold to two Californian utilities under separate power purchase agreements.

Southern California Edison and Pacific Gas & Electric will purchase 250MW and 300MW clean energy respectively over the next two decades. & Electric with 300MW of clean energy for the next two decades.