Kuradashi secures ¥290M for its first battery storage facility

What's the deal? KuradashiDealroom has a profile for this one. Try Dealroom →, a Tokyo-based social impact company best known for its food-waste marketplace, has raised ¥290M ($1.9M) in project finance from Ricoh Leasing for its Tochigi Oyama battery storage facility. The funding backs a grid-scale battery site in Tochigi Prefecture that began operations in May 2025.

Why now? Kuradashi entered the renewable energy business in January 2025, targeting a growing problem in Japan: unused electricity generated by renewables. It launched the Tochigi Oyama facility shortly after, began trading on the Japan Electric Power Exchange (JEPX) in September, and entered the supply-demand adjustment market in December.

The project finance deal validates a "full merchant" model — meaning the facility earns revenue purely through electricity market trading, without relying on subsidies or fixed-price contracts. Securing bank-backed project finance for this model is a milestone for the company and a signal of lender confidence in the asset's revenue potential.

What could go wrong? Full merchant battery storage is inherently exposed to electricity price volatility. Without fixed-price offtake agreements or government subsidies as a safety net, revenue depends entirely on market conditions. Japan's power market dynamics could shift in ways that squeeze margins.

Kuradashi itself is also a relatively new entrant in energy, having built its reputation in food-waste reduction. Scaling a capital-intensive infrastructure business alongside its existing operations carries execution risk.

The signal: Securing project finance for a fully merchant battery storage model — with no subsidies or fixed-price contracts — is a notable proof point for a company still in the early growth stage and better known for food-waste reduction than energy infrastructure. Ricoh Leasing's willingness to back the asset suggests lenders see viable returns in Japan's electricity trading markets as renewable curtailment worsens. If Kuradashi can replicate this financing template across additional facilities, it could carve out a credible second business line far removed from its original marketplace roots.

Read more: prtimes.jp