Equity Participation in Exergy Power Systems Europe Limited in Ireland
Supporting Japanese Companies’ Overseas Business Expansion
- Region: Europe
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on June 15 a shareholders agreement with Exergy Power Systems, Inc. (Exergy; Headquarters: Bunkyo Ward, Tokyo; CEO: Mike Musil) for investment of up to EUR4 million in Exergy Power Systems Europe Limited (EE) in the Republic of Ireland. JBIC will invest through its Special Operations Account*1
The purpose of this investment is to support Exergy in providing ancillary services to adjust electric power supply*2
in the island of Ireland through its local subsidiary, EE.
Exergy is a startup established at the University of Tokyo Hongo Campus in 2011 to develop, produce, sell, and operate next-generation power battery systems. Exergy aims to enter the ancillary services market in the island of Ireland, capitalizing on the fast response capability, high discharge capacity, and excellent durability of their proprietary next-generation batteries. JBIC's investment in EE is intended to support overseas expansion by Exergy and contribute to Japanese industry in maintaining and enhancing its international competitiveness.
In the Fifth Strategic Energy Plan approved by the Cabinet Office in July 2018 and the Growth Strategy Implementation Plan approved in June 2019, the Japanese government expressed its intention to promote the introduction of renewable energy both in and outside the country, as well as to utilize batteries and enhance their capability of achieving decarbonization. Amid progress made in introducing renewable energy in each country, support for the commercialization of next-generation batteries and overseas expansion of such business through the investment in EE is in line with the Japanese government's policy. This support will also contribute toward preserving the global environment through the utilization of Japanese technology.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies by drawing on its various financial facilities for structuring projects, including its equity participation function, and performing its risk-assuming function.
As the amount of electricity generated from renewable energy such as wind is influenced by natural conditions, it is difficult to synchronize generation with electricity demand. In order to further expand the use of renewable energy for power generation, it is essential to introduce an ancillary power source that can respond instantly, and immediately discharge large amounts of electricity to match electricity supply and demand.