Japanese utility Tokyo Gas has entered into a 20-year offtake tolling agreement with developer Hexa Energy Services for a 49.7 MW / 202.1 MWh battery energy storage system (BESS) in Fukushima Prefecture, the two companies announced on July 28. The Fukushima project is scheduled to enter commercial operation in 2029, and pushes Tokyo Gas closer to its raised 2 GW BESS target for the early 2030s.
Tokyo Gas keeps stacking tolling deals
Under the agreement, Hexa Energy Services will develop, own and maintain the Fukushima facility, while Tokyo Gas will acquire operating rights for the full 20-year term and dispatch the stored energy into Japan's power markets. The deal is Tokyo Gas's third major BESS tolling contract in a year, following an April deal with HDRE's Hongde Energy Technology Japan for a 150 MW portfolio, and its landmark first-of-a-kind tolling contract with Macquarie-backed Eku Energy for the 30 MW / 120 MWh Hirohara BESS in Miyazaki.
Investment target already doubled
Tokyo Gas said in a three-year plan for 2026-2028 that it will invest ¥430 billion in its energy business line, including gas infrastructure and grid-scale batteries, out of a total ¥1.1–1.3 trillion capital envelope. The utility had originally aimed for 1 GW of BESS by 2030 but reached near that target within two years of entering the market and has now upped the goal to 2 GW in the early 2030s, split between owned assets and third-party offtake deals like the Fukushima project.
Hexa's capacity-market track record
Hexa Energy Services brought online what it says is Japan's first BESS with a Long-Term Decarbonisation Power Source Auction (LTDA) capacity-market contract, the 30 MW / 120 MWh Tagawa project in Kyushu, in March 2026. “By combining Tokyo Gas's use and operation of this battery storage facility with our accumulated project development and management capabilities, we aim to maximize asset value through a stable grid-based battery storage business,” the developer said in its announcement.
Eku's Hirohara moves into commissioning
Separately, Eku Energy said this week that all major equipment has been installed at Hirohara BESS, including 32 Tesla Megapack 2 XL units, and the project is on track to meet its January 2027 commercial operation date. Japan's grid-scale storage pipeline continues to expand alongside recent moves such as CATL and Alfen's 5 GWh sodium-ion MOU and Antora Energy's US$550M Series C for thermal storage.
Reporting based on coverage from Energy-Storage.News and Hexa Energy Services.