Eku reaches fin close on 30-MW battery project in Japan

Eku Energy has achieved financial closing for its first energy storage project in Japan after securing debt financing from Mitsubishi UFJ Financial Group, the UK battery platform of Macquarie’s Green Investment Group (GIG) said on Thursday.

The Hirohara project envisages the installation of a battery energy storage system (BESS) with a capacity of 30 MW/120 MWh in Miyazaki Prefecture.

“There are certain major milestones to hit until a utility-scale battery energy storage system is ready to support the grid and be a major contributor to the energy transition. Financial close is certainly one of those,” Eku Energy said in a LinkedIn post. In view of the successful project financing, the company said it is on track to hit all future milestones as planned.

The Hirohara BESS will be installed in Oaza Hirohara, Miyazaki City, and will be run under a 20-year offtake contract with utility Tokyo Gas Co Ltd (TYO:9531). Under its terms, Eku Energy will be the site’s owner and Tokyo Gas will hold the operating rights for 20 years. All ongoing maintenance activities will be handled by Eku Energy.

The battery is expected to become operational in 2026. When it first unveiled plans for the project in April, Eku Energy said that construction activities will commence in the second half of 2024.

Japanese engineering group Kinden Corporation, Fortec Architects and Looop Inc will be Eku Energy’s partners in the construction.

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