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Sumitomo Corp. Invests $1.3 Billion in Renewable Energy Storage Across Japan

Expanding Battery Storage Capacity to Support Local Power Grids and Semiconductor Plants in Japan
Japan
s 8053.TSE Blue Chip 150
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According to Nikkei, Sumitomo Corporation has committed 200 billion yen to develop extensive battery storage facilities throughout Japan, aiming to counter the inherent instability of renewable power sources like wind and solar. This initiative includes a newly established 6-megawatt-hour storage system alongside a Kyushu Railway line in Kumamoto Prefecture. The corporation plans to enhance storage capacity in the Kyushu area to 40 MWh, primarily to support local power needs and semiconductor factories, which are significant energy consumers.

As renewable energy production can be unpredictable due to weather and time variations, excess energy often goes to waste. Sumitomo’s strategy involves storing this surplus energy, which can then be used to stabilize the supply during periods of high demand. The system is designed to operate almost autonomously, managed by an AI developed by Sumitomo, from their Tokyo headquarters.

This approach not only leverages technological advancement to improve energy efficiency but also contributes to Japan’s broader energy sustainability goals. By 2031, Sumitomo aims to extend these facilities nationwide, achieving up to 2 gigawatt-hours of storage capacity. This expansion is among the largest domestic investments in battery storage technology, reflecting a significant shift towards supporting renewable energy infrastructures and reducing reliance on traditional power grids.

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