Eku Energy announces its first battery storage project in Japan

Energy Storage specialist, Eku Energy recently announced a 30MW/120MWh Hirohara battery energy storage system (BESS) – its first battery storage project in Japan.

Located in Oaza Hirohara, Miyazaki City, Miyazaki Prefecture the BESS project will be capable of storing enough electricity to power roughly 63,000 households for four hours. For its first BESS project, Eku has signed a 20-year offtake agreement with Tokyo Gas.

"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 specialization coupled with our deep local presence," said Daniel Burrows, Head of Eku Energy APAC.

"We are pleased to be partnering with Tokyo Gas as an off-taker 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."

The financing for the BESS project has been arranged by MUFG Bank, representing the first battery storage project they have arranged finance for in Japan. As part of the offtake agreement, Eku Energy will own the BESS and will be responsible for the ongoing maintenance of the facility while Tokyo Gas will own 100% of its operating rights for 20 years.

Japan has introduced the GX (green transformation) policy, providing economic growth and reducing emissions. Increasing renewable generation is a vital part of the GX policy roadmap and battery storage is expected to play a critical role in integrating renewable power.

"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 decarbonization, stable energy supply, and economic growth are increasing," said Kentaro Ono, Managing Director (Japan) at Eku Energy.

"Our innovative offtake agreement with Tokyo Gas and project finance agreement with MUFG represent important milestones towards realizing GX in the future."

The construction of the BESS project is expected to begin later this year and the battery is expected to start its operations in July 2026.