ITOCHU Concludes Partnership Agreement on Energy Storage Battery Business with TLC, PowerX and Shizen Energy
For the first time,PowerX‘s grid-scale energy storage battery will be introduced to the market (TLC’s grid-scale energy storage plant)
August 3, 2023
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) concluded a partnership agreement with Tokyu Land Corporation (headquartered in Shibuya-ku, Tokyo; Hiroaki Hoshino, President & Chief Executive Officer; hereinafter “TLC”), PowerX, Inc. (headquartered in Minato-ku, Tokyo; Masahiro Ito, Director, President and CEO; hereinafter “PowerX”) and Shizen Energy Inc. (headquartered in Fukuoka-shi, Fukuoka; Ken Isono, Kenji Kawado and Masaya Hasegawa, Representative Directors; hereinafter “Shizen Energy”) on the delivery of energy storage battery systems for the grid-scale energy storage plant operated by TLC at TENOHA Higashimatsuyama in Higashimatsuyama-shi, Saitama (hereinafter the “Business”) and on other new projects. The Japanese-made energy storage barrery manufactured by PowerX, an ITOCHU’s investee, will be introduced in an energy storage battery system for the first time in this gid sclae energy storage plant business.
Background and outline of the Business
As the push towards achieving carbon neutrality by 2050 accelerates, the demand for energy storage battery is expected to increase as a form of backup energy for power variations as the development of solar power and other renewable energy (hereinafter “renewable energy”) advances.
PowerX’s energy storage device system (rated output: 1.8 MW, rated capacity: 4.9 MWh) will for the first time in Japan be introduced in the Grid-scale energy storage battery business.
ITOCHU will undertake arrangements for the design and structuring of the whole energy storage battery system that will be necessary for operating the energy storage battery business in preparation for the introduction of PowerX’s grid-scale energy storage battery system. ITOCHU will also procure control devices and other equipment in addition to PowerX’s energy storage battery system. Shizen Energy will use Shizen Connect, an aggregate energy management system developed and operated by Shizen Energy, to control the energy storage batteries and supply the backup energy from them on the wholesale electricity market, the balancing market, the capacity market and other power markets. This is outsourced from TLC.
The energy storage batteries will be installed at TENOHA Higashimatsuyama located on ReENE Solar Farms Higashimatsuyama, a demonstration experiment platform operated by TLC. Construction of the devices will start within FY2023 and they will begin operating in the first half of FY2024.
Through the Business, the four companies will build a framework for the grid-scale energy storage battery system and will contribute to stabilization of Japanese power systems by working together on this and other projects.
|Name of business operator||Tokyu Land Corporation (1-21-1 Dogenzaka, Shibuya-ku, Tokyo; Hiroaki Hoshino, President & Chief Executive Officer)|
|Name of the business||TENOHA Higashimatsuyama energy storage station|
|Location||1423-1 Kaminomoto, Higashimatsuyama-shi, Saitama|
|Energy storage device system builder||ITOCHU Corporation|
|Energy storage device manufacturers||PowerX, Inc.|
|Battery type||Lithium ion batteries|
|Energy storage device operator||Shizen Energy Inc.|
|Site area||Approx. 400 m2|
|Start of operation||Second half of FY2024 (scheduled)|
Outline of the partnership agreement
The four companies formed partnership with the goal of leveraging their expertise and strengths to promote the new business which will fully open up the market for the energy storage plant business run by TLC at TENOHA Higashimatsuyama, a facility located inside ReENE Solar Farms Higashimatsuyama operated by TLC. While an increasing number of overseas-manufactured energy storage battery systems are being introduced, this new effort to increase the visibility of the energy storage batteris from rising domestic manufacturer PowerX by making them available for viewing by many people at TENOHA Higashimatsuyama should help expand the grid-scale energy storage battery business.
• As the use of grid-scale energy storage plant is expected to increase, the four companies will leverage their expertise and strengths and form a partnership to closely cooperate with one another to implement the Business.
• Consider the applications of the Business in other businesses by making full use of the experience gained.
• ITOCHU: Build an optimal energy storage battery and procure a complete gird-scale energy storage battery system including control devices.
• PowerX: Develop, manufacture and deliver the energy storage battery system.
• Shizen Energy: Control the energy storage device system using Shizen Connect, an aggregate energy management system developed and operated by Shizen Energy, and transact business on various markets.
• TLC: Operate the grid-scale battery storage battery business, provide places to conduct demonstration experiments and operate the overall Business.
Reference: About ReENE Solar Farms Higashimatsuyama
• Profile of ReENE Solar Farms Higashimatsuyama
TLC provides a platform for demonstration experiments in the renewable energy business, which will be a leading business in future generations, and in agriculture in pursuit of participation-oriented demonstration businesses facilitating technological advances, the expansion of business and regional cooperation.
• TENOHA Higashimatsuyama’s profile
As a community symbiosis project, the facility explains and exhibits the results of demonstration experiments and makes its café, co-working space and event space available to the general public in many different ways.
|Facility name||TENOHA Higashimatsuyama|
|Location/access||1423-1 Kaminomoto, Higashimatsuyama-shi, Saitama/25 minutes on foot from Higashi-Matsuyama Station on the Tobu Tojo Line|
|Applications||Café, co-working and events|
|Hours open/Days closed||9:30 a.m.-5 p.m./Closed on irregular days|
|Opening date||December 18, 2022|
About the PowerX 20 ft High Cube (20-foot container-type energy storage device)
|＊ Computer rending of the PowerX 20 ft High Cube. Its appearance and design are subject to change without prior notice.|
• Size: 20-ft container (ISO compliant)
• Cell type: Lithium iron phosphate (LFP)
• Energy storage device capacity: 2.7 MWh
• Place of production: Okayama
About Shizen Connect
Shizen Connect is an aggregate energy management system for collectively controlling energy resources such as renewable energy power-generating equipment, energy storage devices, EVs and EQs. It is capable of controlling residential solar power generators, energy storage devices, EV chargers and microgrids connecting multiple buildings to transmission lines and the equivalent and controlling VPPs with thousands of energy resources among other capabilities. The system’s one-stop ability to provide individual control and VPP control, which have traditionally been separated, can enhance economic efficiency through the multi-purpose use of energy resources. Since the product is vendor free, energy resources can be arbitrarily chosen independent of manufacturer. On July 19, 2023, it was announced that the product will be introduced in a grid-scale battery storage device business together with Nishi-Nippon Railroad Co., Ltd.
|Location||2-5-1 Kita-Aoyama, Minato-ku, Tokyo|
|Representative||Keita Ishii, President & COO|
|Business||Domestic trading, import, export and tripartite transactions of products in the fields of textiles, machinery, metals, energy, chemicals, foods, housing life, information, finance and other fields.|
|Capital||253,448 million yen|
|Established||December 1, 1949|
|Name||Tokyu Land Corporation|
|Location||1-21-1 Dogenzaka, Shibuya-ku, Tokyo|
|Representative||Hiroaki Hoshino, President & Chief Executive Officer|
|Business||General real estate developer|
|Capital||57,551 million yen|
|Established||December 17, 1953|
|Location||Midtown Tower 43F, 9-7-1 Akasaka, Minato-ku, Tokyo|
|Representative||Masahiro Ito, Director, President & CEO|
|Business||Production and sale of large energy storage devices, EV charging station services and development and production of power transfer vessels|
|Capital||5,790 million yen (including capital reserve)|
|Established||March 22, 2021|
Shizen Energy’s profile
|Name||Shizen Energy Inc.|
|Location||Fukuoka Ohori Bldg. 3F/6F, 1-1-6 Arato, Chuo-ku, Fukuoka-shi, Fukuoka|
|Representative||Ken Isono, Kenji Kawado and Masaya Hasegawa|
|Business||Power generation (IPP) for power stations using solar, wind, small hydroelectric and other renewable sources, business development, fundraising, asset management, power retailing for corporations, digital business, etc.|
|Capital||2,591 million yen|
|Established||June 2, 2011|