RCS - Gore Street Capital - GSC Appointed Joint Manager of Japanese Fund

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04/12/2023 08:15

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RNS Number : 4701V  Gore Street Capital Limited  04 December 2023

Gore Street Capital Appointed Joint Manager of Japan's first Energy Storage
Fund

London, 4 December 2023 - Gore Street Capital (https://gorestreetcap.com/) and
ITOCHU Corporation have been selected by the Tokyo Metropolitan Government
(TMG) to launch Japan's first fund dedicated to grid-scale energy storage
systems.

The two firms have been jointly selected as the managers of TMG's energy
creation and energy storage promotion fund following a competitive process
held in April 2023. The pair will launch a joint venture to manage the
public-private partnership fund, to which TMG will contribute ¥2bn (£10.6m)
in funds by the end of fiscal year 2023. Additional funding will be raised
from the private sector, including from ITOCHU.

The fund will be targeted at projects in the Kanto region of Japan. TMG
intends for the energy storage assets to support its efforts to expand
renewable electricity usage to 50% by 2030. ITOCHU is already developing
several grid storage battery projects in Japan, with a cumulative total of
more than 100 MWh of assets under development.

Alex O'Cinneide, CEO of Gore Street Capital, said: "We are proud to have been
selected as the joint manager of Japan's first dedicated energy storage fund
in partnership with ITOCHU.

"Gore Street Capital was one of the first to act in Great Britain's energy
storage market back in 2016 and, in its capacity as investment manager of the
internationally diversified Gore Street Energy Storage Fund (LSE: GSF), has a
proven track record of acquiring and managing a large portfolio of energy
storage assets across multiple OECD jurisdictions.

"We have developed a specialist platform offering the full range of technical
expertise needed to successfully monetise energy storage assets throughout
their lifetime, from acquisition and construction, asset management and
commercialisation all the way through to decommissioning and recycling.

"We look forward to bringing this experience to Japan, alongside our partners
at ITOCHU, to deploy the energy storage capacity needed to accelerate the
country's clean energy transition to a low-carbon and sustainable future."

The new fund will aim to establish a new green financing model for investments
in Japan's nascent utility-scale energy storage sector. GSC and ITOCHU will
jointly manage the investment and technical decisions taken by the fund,
creating the foundations for the country's future deployment of grid-level
energy storage assets.

Several revenue streams are already in place nationally to support new energy
storage, including access to Japan Electric Power Exchange (JEPX) - one of the
most mature wholesale energy markets in the Asia-Pacific region - and grid
balancing services.

New ancillary services are expected to launch in 2024 alongside long-term
decarbonised power supply auctions that will allow battery energy storage of
three hours duration to participate and secure subsidies over a 20-year
period.

Suminori Arima, chief investment officer at Gore Street Capital, said: "We are
highly experienced in entering new markets as a first mover to help establish
energy storage as crucial technology of the energy transition. The market
conditions in Japan are poised to offer significant opportunities for those
willing to take them.

"Through this collaboration with ITOCHU, we are excited to build on our
experience and help shape the future of the Japanese energy storage sector."

 

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For more information please contact:

 

Gore Street Capital Limited

 

David Pratt, Communications Officer      dpratt@gorestreetcap.com
(mailto:dpratt@gorestreetcap.com) / 020 4558 0332

 

 

Notes to Editors

About Gore Street Capital

Gore Street Capital was formed in 2015 as a global platform to acquire and
manage renewable energy solutions. As an experienced renewable energy,
infrastructure, and private equity investment manager, it supports robust
businesses and high-performing assets that contribute towards the transition
to a low-carbon economy.  

In 2018, Gore Street Capital created the UK energy storage investment class,
listing Gore Street Energy Storage Fund (LSE: GSF) on the premium segment of
the London Stock Exchange. As the Investment Manager of GSF, it has played a
material impact in the growth of GSF from £30m to finance the acquisition of
a 10 MW seed portfolio in Great Britain to a market cap of over £451m as of
30 June 2023.  

Gore Street Capital comprises a diverse team of 45 energy professionals in GB,
Ireland and the US working across finance, construction, engineering, legal
and more to support the construction and operation of energy storage systems
around the world. It currently manages an energy storage portfolio of almost
1.2 GW spread across five uncorrelated energy markets, supported by a global
supply chain.

 

 

 

 

 

Executive directors:

 

Alex O'Cinneide is CEO and Chair of the Investment Committee of Gore Street
Capital, which he founded in 2015 as a global platform to facilitate the
deployment of renewable energy solutions. Alex's career has included senior
roles at KPMG, Quorum European Partners, Kleinwort Benson, Paladin Capital
Group and utility-scale renewables developer Masdar Capital, where he served
as Head of Investments and General Manager for six years. He holds academic
qualifications from Trinity College Dublin, the London Business School and the
London School of Economics and Political Science.

 

Suminori Arima is Chief Investment Officer and Chief Financial Officer of Gore
Street Capital. He previously led renewable energy transactions as Managing
Director of Kleinwort Benson and was responsible for private equity investment
management for over $1bn of asset under management while serving as Managing
Director of RHJ International/Ripplewood in Tokyo (parent company of Kleinwort
Benson).  He has also worked in Debt Capital Markets at JP Morgan and prior
to that, at McKinsey & Company.

 

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