UPDATE 1-Acciona, Mitsubishi sign green business pact

(Adds timeframe, more detail)

MADRID, July 13 (Reuters) - Spanish renewable energy and construction company Acciona (ANA.MC) said on Monday it would invest 2 billion euros ($2.8 billion) on sustainable business worldwide with Japan's Mitsubishi Corporation (8058.T).

The investment is for three years and may be extended, an Acciona spokeswoman said. The companies signed a deal to develop projects in renewable energy, water management and treatment, sustainable construction and transportation.

Projects being studied are mostly in wind and solar energy within the Iberian peninsula, Australia and the United States, the spokeswoman said.

"Both partners may take equity stakes in projects or companies that fall within the joint strategy framework or that strengthen their partnership," Acciona said.

At 1227 GMT Acciona shares were up 3.2 percent at 83.05 euros. (Reporting by Sarah Morris and Clara Vilar; Editing by Greg Mahlich and Dan Lalor) ($1 = 0.7189 euro)