FAR EAST: JAPAN REPORT
PowerX, Inc. says it has raised 4.15 billion yen in funding for two electrification projects: one is to develop its own “Power ARK,” a ship that carries electricity, and the other is to build a large-scale storage battery factory in Japan.
The idea behind the Power Transfer Vessel is to store electricity in container-shaped storage batteries and transmit it by ship, with an eye toward the expansion of offshore wind farms. Conventionally, power is transmitted from offshore wind farms to land via submarine cables, but the aim is to develop the Power Transfer Vessel that can replace submarine cables. This will make it easier to construct power plants offshore in windy distant seas. The construction of submarine cables that pass high-voltage electricity is environmentally hazardous, but the Power Transfer Vessels are cheaper than cables and will enable power transmission to be realized sooner.
Power Ark 100. The first vessel, the “Power ARK 100,” will have a length of approximately 100 meters and will be equipped with 100 storage batteries in the form of shipping containers, enabling it to store 220 MWh of electricity. This is roughly equivalent to one day’s worth of electricity for one city (22,000 households). In the event of a large-scale power outage or other disaster, the ship will serve as a contingency power source. Larger vessels are also planned, and a 220-meter-long vessel capable of carrying 3,000 containers would be able to transport 5,660 MWh of electricity.
The range of the ship is 100 to 300 km with Power ARK 100, but this is with electric propulsion only, and it is expected to be possible to sail 1,000 km by combining clean diesel and other fuels. The first vessel is scheduled for completion in 2025. PowerX’s business mission is to take advantage of the explosive spread of renewable energy through the transportation of this electricity.
Battery Production. The construction of a storage battery factory, another pillar of the company’s business, will be developed before the ship is constructed. The storage battery plant will require an investment of around 10 billion yen, and on May 23, the company announced that it had raised 4.15 billion yen through a third-party allocation of new shares as the first half of a Series A round of financing.
The construction site has already been decided in Tamano City, Okayama Prefecture. The plant will have a maximum production capacity of 5 GWh, making it one of the largest in Japan. Construction is set to begin in 2022 and test production will be done the following year. Prior to developing the ship, the company intends to get its operations off the ground by first manufacturing and selling storage batteries.
In addition to large container-type marine batteries (3,000KWh), the company will also manufacture grid storage batteries for building power transmission and distribution systems, and batteries for quick recharging of EVs (300-900KWh). The EV quick-charge batteries are about the size of a car and are envisioned to be recharging devices, allowing EVs to be recharged alongside them. The batteries are designed to be able to be quickly recharged at convenience stores, supermarkets, and other places where consumers visit during the 10 minutes, they are shopping, without the need for construction work.
All these storage batteries will be connected to a “mobile recharging network” that can be managed centrally on the cloud, including their operating status and remaining power levels. In other words, the storage batteries (i.e., EV rechargers) can be relocated to locations where demand exists. The storage battery factory will only assemble storage batteries but will not manufacture the cells that form the core of the batteries. The cells are supplied from an external source.
Source: Norimono News
PSR Analysis: PowerX was founded in March 2021. It is a company developing new businesses aimed at the development of renewable energy and the advancement of energy storage and transmission technologies. With the vision of “realizing the explosive spread of renewable energy,” PowerX is pursuing two core businesses: the manufacture and sale of storage batteries (Project MAX) and the development and manufacture of the Power Transfer Vessels (Project ARK). Participating investors include the following companies.
Spiral Capital / NIPPON GAS / Imabari Shipbuilding / NYK / Mitsui & Co / Mitsubishi UFJ Bank / BEMAC / JAL Innovation Fund / Tokyo Century Corp / Mizuho Capital / Future Creation Capital (Mizuho Leasing CVC) And, outside directors include the co-founder of Northvolt, a former Google executive, and a partner at Goldman Sachs.
Their actions are very concrete, as if they are trying to dispel the negative voices saying that it is a pipe dream. They have already signed an LOI with DNV for the Power Transfer Vessel and are working with Imabari Shipbuilding for its construction. After construction, NYK will take the lead in vessel operation.
What makes their projects outstanding is that they are highly cost-conscious. For example, in the case of the Power Transfer Vessels, the construction and maintenance of submarine cable infrastructure for power transmission can be significantly reduced. In the case of quick-charge batteries for EVs, the construction costs are eliminated in principle. Both measures are aimed at reducing the cost of energy infrastructure.
If this vessel were to be commercialized, there would be demand for it as a power-feeding vessel. If the goal is to achieve zero CO2 emissions during anchoring of large vessels, generators will not be available. If the Power Transfer Vessel can supply electricity in such a case, CO2 emissions during anchoring can be stopped.
The biggest challenge will be the development of batteries. Batteries themselves are very heavy, which is why the development of electric ships has not progressed as smoothly as that of automobiles. I will be keeping a close eye on whether they can develop a super high-capacity battery for a cruising distance of more than 100 km round trip.
Quite simply, their concept is amazing. It is one of the concepts that will propose an optimal solution that includes electric power infrastructure and EV charging and will have a significant impact on electric power companies, the shipbuilding industry, and the EV industry. Right now, they are still at the stage of news that one venture company has succeeded in raising a large amount of funds. Further investment is expected to ensure that this does not become a pipe dream. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
