DEC 19, 2023
Nidec Awarded Texas EPC Contract and Enters into Strategic Relationship with Gore Street
Nidec announced today that it has been selected by Gore Street Energy Storage Fund PLC (GSF) as the Engineering, Procurement, and Construction (EPC) contractor to supply and service a battery energy storage system (BESS) as part of ongoing efforts to support Texas’ energy grid.
The 75 MW project for a one-hour energy storage system, named “Dogfish”, will total 75 MWh of energy, and will include Nidec’s ES1500 Power Conversion System (PCS) as well as an operation and maintenance contract. Dogfish marks Nidec’s second US-based BESS project and its largest to date.
Dogfish will support the ERCOT (Electric Reliability Council of Texas) grid network, which supplies power to over 25 million customers in the state of Texas. Renewable energy technologies such as BESS installations are increasingly important in ensuring stable energy supply, particularly as unexpected weather events threaten the reliability of traditional methods of energy generation. The system supplied by Nidec will further this initiative by ensuring optimal grid stability and minimal energy losses through challenging climate conditions.
“With its success in bolstering European power grids and local manufacturing footprint, Nidec is positioned perfectly to support the United States as it begins deploying more sustainable forms of energy and energy storage,” comments Michael Briggs, Senior Vice President and President of the Motion & Energy Business Unit at Nidec. “Being awarded this contract with GSF is a demonstration that we are the market and technology leader in ensuring energy stability throughout the globe.”
In anticipation of future energy needs, Dogfish is designed to allow for future retrofitting to extend its duration from a one-hour system to a two-hour system.
BESS used for the project will be designed and the PCS will be both designed and assembled in Nidec Industrial Solutions’ Cleveland, Ohio facility, which will begin production in January of 2024. The planned expansion in manufacturing capabilities will not only be key in supporting US-based BESS projects, but will also create manufacturing, sales, and engineering jobs in the state over the next 3-5 years.
Announcement of Strategic Partnership and Investment with GSF
Nidec and GSF have announced a strategic partnership in which Nidec will invest approximately $20m into GSF, representing slightly under 3% of the outstanding shares. The strategic partnership will last for a period of five years from the date of admission of shares, and guarantees participation for Nidec in the bidding process for GSF’s future battery energy storage systems, including a pipeline of around 360 MW of projects already announced within the five years.
Nidec has a significant presence in the European BESS market with 2,725 MW installed as of the first half of fiscal year 2023, and is planning to expand its business outside of Europe. GSF is also strengthening its portfolio through build-out of new capacity in markets around the world, aligning with Nidec’s strategy.
“We are delighted to strengthen the existing relationship between Nidec and Gore Street with this strategic partnership and share issuance,” said Alex O’Cinneide, CEO of Gore Street Capital and investment manager of GSF. “We look forward to working closely with Nidec over the coming periods.”
Nidec and GSF have previously partnered together on over 120 MW of energy storage assets, including the Ferrymuir asset in Scotland and the Stony asset in England.
With headquarters in Kyoto, Japan, and its Motion & Energy business headquarters in St. Louis, Missouri, Nidec is the world’s leading electric motor manufacturer, comprised of 340 group companies and 100,000 employees. A pioneer in electrification, Nidec has worked across a wide array of industries ranging from information technology, automotive, appliance, commercial, industrial and machinery since its foundation in 1973. Nidec is a trusted development partner in multiple high-growth spaces including industrial automation, vehicle electrification and energy storage, providing world-class technology, support, and localized manufacturing to support industry leaders across the globe.
About Nidec Industrial Solutions
With US headquarters in Cleveland, Ohio, Nidec Industrial Solutions is part of the larger Nidec Group under its Motion & Energy business platform. Its proven history of innovation and expertise allows the company to tailor its products and services to meet the needs of industries around the globe. Nidec Industrial Solutions is an expert in Battery Energy Storage Systems, EV Charging, Power Quality, and Hydrogen.
About Gore Street Energy Storage Fund
Gore Street Energy Storage Fund plc (“GSF” or “the Company”) is London’s internationally diversified listed energy storage fund, launched in May 2018. It holds a portfolio totaling 1.17 GW spread across battery storage facilities in Great Britain and Ireland, Western Mainland Europe and the US. It is listed on the Premium Segment of the London Stock Exchange and included in the FTSE All-Share Index.
Barbarino & Partners (Media Enquiries)
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