Japanese firm Itochu Corporation has strengthened its grip on the energy storage industry with an investment in lithium-ion energy storage system maker Eguana Technologies.
The deal paves the way for Itochu to expand sales of ESSs in the US, Australia and Europe— key markets for the Canadian firm Eguana.
Itochu also plans to enter new businesses including the virtual power plant market— a rapidly growing market in Australia— using Moixa’s GridShare platform, the UK firm it invested £5 million into during 2018.
Itochu will take advantage of the strengthened ties with Eguana in business collaborations with its other investee companies: Sunnova Energy Corporation (US residential solar and storage provider) and NF Blossom Technologies (Japenese ESS manufacture).
The investment was in the form of unsecured convertible bonds with warrants, with Itochu planning to invest in Eguana by converting the bonds into stock, based on the stock price of the company.
Itochu and Eguana formed a strategic partnership in 2015, under which the two companies have been engaged in joint marketing activities. They have agreed to form capital ties for the purpose of expanding the business in North America, Australia and Europe, where the market for energy storage systems is expected to grow.