ENERGY STORAGE

Eku Energy announces 120MWh Japanese battery storage project

April 24, 2024

Eku Energy has announced its first battery storage project in Japan, the 30MW / 120MWh Hirohara battery energy storage system (BESS) located in Oaza Hirohara, Miyazaki City, Miyazaki Prefecture.

Eku Energy 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, Eku Energy said.

Project financing has been arranged by MUFG Bank – it represents the first battery storage project the bank has arranged finance for in Japan.

Under the offtake agreement, Eku Energy will own the BESS while Tokyo Gas will own 100 per cent of its operating rights for 20 years, with Eku Energy responsible for the ongoing maintenance of the facility.

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 incentivize 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 realizing GX in the future.”

Hirofumi Sho, Japan head at Eku Energy Japan, 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 realize a more sustainable energy future.”

  • Eku Energy chief strategy officer Andy Hadland was a participant in the recent Tamarindo/Energy Storage Report roundtable on ‘Maximising BESS revenues’, held in partnership with Eversheds Sutherland. Look out for a post-event report – summarising the key findings from the event – coming soon.