Fuyo General Lease: will participate in the utility scale network storage battery business to be implemented by Nippon Koei in the UK

December 212021

News Release

Fuyo General Lease Co., Ltd.

President and CEO Yasunori Tsujita

5-1-1 Kojimachi, Chiyoda-ku, Tokyo

Fuyo will participate in the large-scale network storage battery business to be implemented by

Nippon Koei in the UK

The first large-scale network storage battery company to be implemented with investment and

financing by Japanese companies

Fuyo General Lease Co., Ltd. (Headquarters; Chiyoda-ku, Tokyo; President and CEO: Yasunori Tsujita; hereafter, Fuyo Lease) is pleased to announce its participation in a large scale network storage battery project in the UK , equivalent to approximately 100 megawatts (MW) (hereafter: “the project”), which will be led by Nippon Koei Energy Europe BV (headquarters: Rotterdam, The Netherlands; CEO: Masato Suzuki; hereafter: NKEE), a wholly-owned subsidiary of Japan’s largest general construction consulting group Nippon Koei Co., Ltd (Headquarters: Chiyoda-ku, Tokyo, Chairman: Hiroaki Shinya; hereinafter: Nippon Koei).

In the UK, the need to stabilize the electricity grid is increasing with the spread of renewables, and the introduction and use of large-scale grid storage batteries is being encouraged so that grid operators can procure a adjustment power*1 such as the frequency and adjustment of market supply and demand. The project will contribute to the stabilization of the electricity system by connecting to the electricity transmission and distribution systems operated by National Grid, a major electricity transmission company in the United Kingdom, and by providing electricity system stabilization services (ancillary services*2) to the network manager. YUSO BV (headquarters: Waregem, Belgium; managing director: Bart Pycke; hereinafter “YUSO”) will be in charge of access to the electricity market as an aggregator*3. Construction will begin in December 2021 and commercial operation is expected to start around spring 2023. Fuyo Lease, Tess Engineering Co., Ltd (Headquarters: Yodogawa-ku, Osaka; President and CEO: Toshihiro Takasaki), Tokyo Century Corporation (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Makoto Nogami) and Toshiba Mitsubishi Electric Industrial Systems Corporation (Headquarters: Chuo-ku, Tokyo; President: Masahiko Yamawaki) will participate in this project as joint venture partners , which will make it the first large-scale battery storage project for the grid in the UK to be funded and financed by Japanese companies.

In addition to investing in this project, Fuyo Lease will arrange financing for the project using operating revenue from the large-scale storage battery business for the grid as a source of repayment, and provide financing as a lender. main. This will be Fuyo Lease’s first large-scale storage battery project.

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The Fuyo Lease Group has positioned “Energy and the environment and “Abroad” as strategic areas in its Frontier Expansion 2021 medium-term management plan and in order to achieve decarbonization, we are working on renewable energy generation projects not only in Japan, but also in the United States, Taiwan and other countries. ‘other countries. With rich experience, Nippon Koei will lead the project, and with the knowledge gained from participating in this project, we will work to expand our business scope in anticipation of the supply and demand adjustment market. *4 which is gradually developing in Japan, and in cooperation with our alliance partners.

The Fuyo Lease Group will contribute to the creation of a sustainable society by putting into practice the concept of Creating Shared Value (CSV), which calls for active involvement in solving social problems while seeking to develop as business.

Project summary

activity Descrition

Large-scale battery storage business for the UK grid

CPE*5

Provider

NKEE

Operation and maintenance*6

Provider

NKEE

Aggregator

YUSO B.V.

Project schedule

December 2021

Start of construction

Spring 2023

Operation begins (planned)

Project location

Tollgate and Cuxton in the South East of England

(Storage battery scale: 49.5MW x 2)

(*1)Adjustment powerIn order to avoid power outages and disruptions to facilities and equipment, electricity supply and demand must always match, and this refers to the power needed to match supply and demand in power plants electrical and other facilities in response to changes in demand.

(*2)Auxiliary serviceFunction that maintains a stable and quality supply of electricity by unifying the supply, transmission and distribution networks and instantly maintaining the balance between supply and demand.

(*3)AggregatorCommercial entity that provides services that help maintain the balance between supply and demand for electricity by providing frequencies to transmission and distribution companies and other powers necessary to maintain the balance between supply and demand. electricity demand.

(*4)Supply and Demand Adjustment MarketA system that began in April 2021 to exchange electricity (adjustment power) needed to adjust electricity supply and demand at power stations in a unified national market.

(*5)CPEEngineering, Procurement, Construction

(*6)Operation and maintenanceOperation & Maintenance

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During the launch ceremony of the project

Japanese investors companies (from left Toshiba Mitsubishi Electric Industrial Systems Corporation, Fuyo General Lease Co., Ltd., Nippon Koei Co., Ltd., TESS Engineering Co., Ltd. and Tokyo Century Corporation)

Information contact

Fuyo General Lease Co., Ltd. Corporate Communications Division: Ms. Kimura / Mr. Yamazaki

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Warning

Fuyo General Lease Co. Ltd. published this content on January 13, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on January 13, 2022 01:10:19 UTC.

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