PowerX, a Japanese technology company developing a project to ship energy from offshore wind farms in batteries, has started to generate investor and buyer interest.

The concept was launched earlier this year by Japanese technology entrepreneur Masahiro Ito.

He is best known for developing digital body measurement technology, now acquired by ZOZO Corp, for use in online clothes retailing.

Ito's latest idea is to shuttle offshore energy between wind farms and the shoreside in containerised modular batteries on purpose-built containerships.

The project will get of the ground with the construction of a 100-teu prototype ship called Power Ark 100, which can carry enough energy to supply 22,000 households.

The vessel will be used for proof of concept in 2025, before the project is scaled up to ships of up to 3,000 teu.

The move is initially aimed at the offshore wind farm business, which the Japanese government is planning to ramp up to 45 GW of capacity by 2030.

In theory, the Power Ark 100 would enable wind farms to be located further out to sea, where increased power generation can be achieved, and enable energy transportation to be procured at a fraction of the cost of laying cables.

Key advantage

A key advantage of the project is that it also increases the mobility of offshore energy transportation.

PowerX is simultaneously developing new innovative battery technology that will allow the stored battery power to be used in a variety of ways. Plans for a battery factory are also in the works.

The compact battery units could be plugged directly into the national grid, or used to charge battery-powered ships.

Delivered directly

But the battery units could also be delivered directly to onshore retail outlets for a variety of uses, including as mobile electrical vehicle (EV) charging stations. Japan is targeting the installation of 30,000 EV charging points by 2030.

The power can also be transported and traded internationally in ships. PowerX said it has already started discussions with several Japanese shipyards on building the ship.

Masahiro Ito, chief executive of PowerX, is talking to potential financial backers. Photo: PowerX

British ship designer John Kecsmar, who made his name designing high-speed passenger ferries and paramilitary vessels, has been taken on to design the Power Ark 100.

The initial investment also involves the construction of a battery factory, which is expected to cost about $100m. The concept ship is the smallest initial capital expenditure with an estimated cost in the region of $30m.

Paulo Cerruti, founder and chief operating officer of Northvolt — the first European manufacturer of giga-scale batteries — has been brought on as a non-executive director.

He has successfully raised $6.5bn in funding for his own projects so far, and his expertise in the field is expected to add to PowerX's technical and commercial development.

Power Ark 100 Prototype Power Transfer Vessel
  • Capacity: 100 teu
  • Length: 100.5 metres
  • Beam: 21.9 metres
  • Draught: 6.5 metres
  • Delivery: 2025
  • Cost: $30m
Source: Power X

PowerX is already working with a number of financial backers, including major potential end users of the technology, as well as traditional bank finance.

Japanese government subsidies for renewable energy development are another potential source of funding that PowerX is exploring.

While the concept sounds convincing, the big question is whether it is feasible. Classification society DNV works extensively in the offshore wind farm sector and thinks it has potential.

"It is very interesting to see the concept from PowerX, as it addresses issues concerning the mobility of energy storage capacity, allowing for more flexible energy grid infrastructure," said Arnstein Eknes, business segment director of special ships at DNV Maritime.

"Traditionally a lot of energy is lost during transformation from, for example, liquid fuel to electricity in the combustion process, and long-distance transportation of electricity by electrical cables will also be subject to transmission losses."

Eknes said that there could be a further application for fuelling electric-powered coastal vessels.

"As new offshore wind farms will produce electricity directly at the offshore location, far away from where the main consumers are located, perhaps PowerX could also provide modular energy systems for the many coastal vessels trading in the same area."

But PowerX is not alone in trying to develop alternative ways of utilising wind farm energy, and there are more advanced projects underway.

The biggest area of development is in using offshore wind power to generate hydrogen.

In one such development Siemens Gamesa Renewable Energy and Siemens Energy have lined up €120m ($140.5m) worth of investment to realise an offshore demonstration project by 2025 or 2026.