Kuradashi and Tsuji-Hongo Smart Asset Form Joint Venture for Energy Storage Development

Kuradashi and Tsuji-Hongo Smart Asset to Collaborate on Energy Storage Initiatives

Overview

In a significant move for sustainable energy development, Kuradashi, based in Tokyo, has established a foundational agreement with Tsuji-Hongo Smart Asset Corporation to implement a joint venture aimed at expanding the use of grid-connected energy storage systems in Japan. This partnership not only focuses on collaborative development of several energy storage facilities but also considers establishing an investment fund dedicated to these storage projects.

Background of the Collaboration

With a mission centered around being a socially responsible company, Kuradashi actively addresses social issues through its business initiatives. The company announced its mid-term management plan for the period from June 2025 to June 2027, identifying three primary pillars for future growth: expanding e-commerce operations, enhancing supply chain functionalities, and pursuing non-linear growth through new business ventures, including mergers and acquisitions.

In December 2024, Kuradashi began discussions on entering the renewable energy market, particularly focusing on grid-connected battery storage, and launched its Green Infrastructure Company. The acquisition of its first storage facility, the Tochigi Koyama Battery Storage Facility, followed in January of the next year, marking its entry into the grid-connected battery storage sector.

Tsuji-Hongo Smart Asset, recognized for its initiatives as an Eco-First company, specializes in the buying, support, and operation of power generation plants, along with design and installation of solar power and battery systems for both residential and industrial needs. The company operates as a group with Tsuji-Hongo Tax Accounting Corporation, providing robust support for over 19,000 client companies to contribute to the realization of a carbon-neutral society.

Objectives of the Joint Venture

In agreement with the recent national energy policy approved in February, which emphasizes increased renewable energy capacity, Kuradashi and Tsuji-Hongo Smart Asset have jointly committed to the proliferation of energy storage systems that are crucial for this vision. Currently, Kuradashi holds a 51% stake in this collaboration, while Tsuji-Hongo Smart Asset accounts for the remaining 49%.

Both entities have set plans to jointly develop and operate more than five grids-connected energy storage facilities within a two-year timeframe. To streamline construction efforts, YK Engineering Co., Ltd. is expected to collaborate on these projects, leveraging its engineering expertise to ensure effective implementation.

Future Outlook

This joint venture will enable Kuradashi to utilize Tsuji-Hongo Smart Asset’s extensive knowledge and experience in solar power and battery operations, effectively accelerating its business expansion in the renewable energy sector, particularly in energy storage. Conversely, Tsuji-Hongo Smart Asset will gain access to Kuradashi's valuable information on battery storage and land pipeline opportunities, allowing for innovative solutions to emerge.

Additionally, there's a proposal to establish a special purpose company (SPC) to manage the energy storage facilities and create a fund for potential investors. Revenues from the operation of these energy storage facilities will be returned to investors as dividends, fostering a cycle of investment that could support the establishment of new energy storage sites in the future.

As part of its commitment to social responsibility, Kuradashi will continue to develop services that address social issues through innovative business practices, working together with diverse partners to further expand operations and create social value.