Corrects purchase price in second paragraph.
Japanese gas and energy supplier Tokyo Gas plans to acquire US battery energy storage system (BESS) company Longbow in Texas, targeting to begin commercial operations of the system during the latter half of 2024.
Tokyo Gas' wholly-owned subsidiary Tokyo Gas America said on 22 December it was buying a 100pc stake in Longbow for $216mn from Longbow's parent company Clean Capital Partners. This will be Tokyo Gas' first BESS project, it said.
Longbow's 174MW and 348MWh BESS in Texas will be used to supply electricity bought from the wholesale power market Electric Reliability Council of Texas to the adjustment market, covering demand when supplies become tight. Construction of the system will begin in early 2024.
Tokyo Gas chose Longbow as Tokyo Gas America operates the 630MW Aktina solar power plant in Texas. The firm also foresees BESS demand growth as renewable power has developed rapidly in Texas.
Japanese companies have been increasingly interested in BESS projects with growing demand for renewable power. Trading house Marubeni has also attempted to launch a BESS business by working with Vietnamese auto manufacturer VinFast to recycle its electric vehicle batteries.
