Eku Energy announces first battery storage project in Japan
Hirohara Battery Energy Storage System project render
20-year offtake agreement signed with Tokyo Gas
Global energy storage specialist, Eku Energy, has announced the Hirohara Battery Energy Storage System (BESS) located in Oaza Hirohara, Miyazaki City, Miyazaki Prefecture. The 30MW/120MWh battery is Eku’s first in Japan, and the company has agreed a 20-year offtake agreement for the project with Tokyo Gas.
Construction is scheduled to begin in the second half of 2024 and the battery is expected to begin operating in July 2026. Once live the BESS will be capable of storing enough electricity to power approximately 63,000 households for four hours.
Project financing has been arranged by MUFG Bank representing the first battery storage project they have arranged finance for in Japan. Under the offtake agreement, Eku Energy will own the BESS while Tokyo Gas will own 100% of its operating rights for 20 years, with Eku Energy responsible for the ongoing maintenance of the facility.
As the global net zero transition accelerates, Japan has introduced its GX (green transformation) policy which provides a roadmap for economic growth and emissions reductions. Increasing renewable generation is a vital part of this roadmap and battery storage has a critical role to play in balancing electricity supply and demand.
Eku Energy is working across the full project life cycle to develop, build, and manage battery storage assets globally, with a presence in the UK, Australia, Japan and Italy. The company aims to grow its battery storage portfolio in Japan and support the country’s GX targets by combining its global expertise, technology and commercial knowledge.
Daniel Burrows, Head of Eku Energy APAC, said:
The Hirohara battery energy storage system is Eku Energy’s first project in Japan set to reach Financial Close and our latest global project that combines our global energy storage specialisation coupled with our deep local presence. We are pleased to be partnering with Tokyo Gas as offtaker as we together accelerate the energy transition. The policy settings in Japan support investment in Battery Energy Storage and are compatible with delivering safe, secure and reliable green energy in a cost-effective manner to energy consumers, which is our mission.
Kentaro Ono, Eku Energy Japan’s Managing Director, said:
In support of the government's policy for achieving GX, Japan is creating business environments to incentivise battery storage development. Opportunities to achieve the trinity of decarbonisation, stable energy supply, and economic growth are increasing. Our innovative offtake agreement with Tokyo Gas and project finance agreement with MUFG represent important milestones towards realising GX in the future.
Hirofumi Sho, Eku Energy Japan’s Japan Head, said:
As a company specialising in battery storage, Eku Energy has created strong foundations in Japan. We are working innovatively with stakeholders to respond to the increasing demand for battery storage and realise a more sustainable energy future.