Stonepeak, CHC Form Japanese Battery Energy Storage Platform

Stonepeak, CHC Form Japanese Battery Energy Storage Platform

Stonepeak, an alternative investment firm specialising in infrastructure and real assets, and CHC, a battery energy storage system project development and electricity data management company headquartered in Singapore, have announced the creation of a platform focused on the development, construction, and operation of energy storage projects in Japan.

The platform will focus on developing, constructing, and operating BESS projects to accelerate Japan’s power industry decarbonisation. The Stonepeak / CHC platform was recently awarded a 20-year fixed revenue capacity market contract for four BESS projects as part of the Japanese government’s inaugural Long-term Decarbonization Auction. The platform will initially target 1GW of BESS projects in Japan over the next five years, and seek to build and grow a long-term business in Japan to facilitate Japan’s carbon neutrality goal, while supporting grid stability and reliability.

“As Japan accelerates the development of renewable energy projects to meet its decarbonization goals, energy storage will have a crucial role to play in enhancing the reliability of the Japanese grid,” said Ryan Chua, Senior Managing Director at Stonepeak. “This increasing need for dependable BESS capacity, which has the long-term support of the Japanese government, is the basis for our decision to pursue this partnership with CHC, which we believe will be a strong fit for our global renewables strategy. We look forward to combining our expertise in renewables and platform creation with CHC’s extensive local network, relationships, and differentiated supply chain to develop this platform.”

“We are excited to partner with Stonepeak, the world’s largest independent infrastructure investor with a strong track-record of supporting successful renewable energy platforms, as CHC continues to build and scale our BESS business,” said Jay Guo, Chief Executive Officer of CHC. “CHC is committed to Japan’s energy transition, reliable power grids, and advancing sustainable solutions. Our partnership with Stonepeak marks a significant step towards delivering more reliable and efficient renewable energy that will benefit communities and industries across Japan.”

Stonepeak takes a strategic and disciplined approach to investing in renewables and the energy transition, leveraging the experience of both its global investment team and on-the-ground experts in platform creation, construction, development, and operations. To date, the firm’s renewables and energy transition portfolio has approximately 16.2 GW of capacity in operation and development, spanning solar, onshore wind, offshore wind, and battery storage, in addition to investments in renewable natural gas and other subsectors. In 2024, Stonepeak has invested in TerraWind Renewables, an onshore wind platform, in partnership with Shizen Energy; ZEN Energy’s Templers BESS project in South Australia; a portfolio of four U.S. onshore wind farms, in partnership with Ørsted; and Dominion Energy’s Coastal Virginia Offshore Wind Project.

Ashurst served as legal counsel to Stonepeak. White & Case LLP served as legal counsel to CHC. Greenberg Traurig, LLP served as legal counsel to the platform.

Stonepeak is an alternative investment firm specializing in infrastructure and real assets with approximately $65.1 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns.