ITOCHU Announces Project for U.S. Power-Saving Service Provider and Intelligent Energy Storage-Related Business Initiatives
April 23, 2015
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it would establish a joint investment firm with K Road DG LLC, a U.S. power-related investment company (headquartered in New York, the United States; William Kriegel, CEO; hereinafter “K Road”), underwrite a capital increase through a third-party allocation of newly issued shares from Green Charge Networks (headquartered California, the United States; Vic Shao, CEO; hereinafter “Green Charge”), a U.S. intelligent energy storage company that combines proprietary software and lithium-ion batteries (hereinafter “the battery storage system”), and launch the battery storage system business in the Japanese and overseas markets, including the United States.
Green Charge has developed cloud-based software for real-time monitoring of its intelligent battery storage system, and provides pioneering power-saving services to major customers throughout the United States. Green Charge’s energy storage system has enabled customers to reduce demand charges and to achieve significant reductions in their electricity bills. After Green Charge carried out more than three-year pilot / field test program at multiple locations as well as optimization of the software system, Green Charge launched the full-scale deployment of their system in 2013. Green Charge provides services to commercial and industrial businesses, schools, local municipal governments and libraries, as well as numerous retail and service stores, including 7-Eleven , a leading convenience store chain, and Walgreens, a U.S. pharmacy chain. ITOCHU will develop full-scale business operations in this area.
Through its recent funding project, ITOCHU will undertake the following initiatives in areas where there is expected to be strong demand.
(1) Extend the reach of the battery storage system in the U.S. market.
(2) Launch of Green Charge’s original software and the battery storage system in the Japanese market and markets outside of the U.S.
(3) Creation of a new business model in which finance and maintenance etc. are incorporated upon the launch of the energy storage system.
ITOCHU takes active initiatives to build a value chain focusing on group networks and to create new value through its participation in the development, production and sale of primary battery materials (cathode and anode materials) on the upstream side and the sale of battery storage systems on the downstream side. ITOCHU also promotes lithium-ion battery-related business initiatives as an environmentally friendly business area. ITOCHU will contribute to creating a dispersive energy-oriented society, including renewable energy, in addition to expanding the use of the stationary battery storage system, particularly on the downstream side, by partnering with Green Charge and K Road.
Company overview of Green Charge
Green Charge Networks Inc.
|Headquarters||Santa Clara, California, USA|
|Number of employees||26|
|Business area||Installing original control and monitoring software in a stationary battery storage system and providing power-saving services|
|Strong points of GCN||
Company overview of K Road
|Company name||K Road DG LLC|
|Headquarters||New York, New York, USA|
|Business area||Investment in the smart grid and dispersive energy business|