CleanCapital Acquires Majority Interest in Battery Storage Portfolio Through Joint Venture with Osaka Gas
CleanCapital, a leading independent power producer specializing in distributed renewable energy and clean infrastructure, has announced the acquisition of a majority interest in a 7.7 MW / 30.8 MWh battery energy storage portfolio through a newly established joint venture with Osaka Gas USA. Under the terms of the transaction, CleanCapital will serve as the managing member of the joint venture and will be responsible for ongoing asset management, operations oversight, and the long-term strategic relationship with Osaka Gas USA.
The acquisition underscores CleanCapital’s continued focus on expanding its ownership of high-quality energy storage assets in strategic U.S. markets, particularly in dense urban areas where grid congestion, high electricity demand, and resilience challenges are most acute. By partnering with Osaka Gas USA, a subsidiary of one of Japan’s largest and most diversified energy companies, CleanCapital strengthens its capital base, technical collaboration, and international partnerships in support of its growth strategy.
Strategic Battery Assets in New York City
The acquired portfolio consists of two operating standalone battery energy storage systems (BESS) located on Staten Island in New York City. Known as the Arlington and Littlefield projects, the facilities reached commercial operation in July and August 2023, respectively. Together, the projects provide 7.7 MW of power capacity and 30.8 MWh of energy storage, enabling them to deliver sustained support to the local grid during periods of peak demand and system stress.
Both projects participate in New York’s Value of Distributed Energy Resources (VDER) program, a cornerstone policy initiative designed to compensate distributed energy assets for the full range of benefits they provide to the electric system. Through VDER, the Arlington and Littlefield batteries generate value by delivering capacity, energy, and grid services that enhance reliability, defer infrastructure upgrades, and reduce system-wide costs.
NYU Langone Hospitals serves as the sole net-crediting offtaker for both facilities, providing a stable and creditworthy counterparty. This arrangement ensures predictable revenue streams while also supporting the hospital system’s sustainability and resilience objectives. In an environment where critical facilities such as hospitals must maintain uninterrupted power and manage energy costs effectively, battery storage plays an increasingly important role.
Leveraging Operational Expertise and Safety Leadership
The projects benefit from CleanCapital’s extensive experience in owning, operating, and managing distributed clean energy assets across the United States. The company brings to the portfolio a network of proven vendors and technical partners that support high-performance operations and rigorous safety standards.
Battery and technical operations and maintenance services are delivered by experienced providers, including the Energy Safety Response Group (ESRG). ESRG manages battery fire protection systems, emergency response protocols, and specialized training for local fire departments. This focus on safety is particularly critical in dense urban environments such as New York City, where community protection, regulatory compliance, and stakeholder confidence are paramount.
CleanCapital’s approach emphasizes not only asset performance and financial returns, but also long-term operational integrity. By integrating best-in-class safety practices and proactive maintenance strategies, the company aims to ensure that energy storage assets remain reliable contributors to the grid throughout their operating lives.
Advancing Grid Modernization and Resilience
“This investment reflects CleanCapital’s continued commitment to scaling reliable, resilient clean energy infrastructure in the markets where it is most urgently needed,” said Julia Bell, Chief Investment Officer at CleanCapital. She noted that energy storage systems like Arlington and Littlefield are essential components of a modern electricity grid, particularly in high-demand regions such as New York City.
Bell emphasized that the joint venture with Osaka Gas USA aligns with CleanCapital’s broader strategy of expanding its asset ownership and management capabilities in energy storage. As renewable generation grows and electricity demand continues to rise, storage assets provide the flexibility required to balance supply and demand, manage congestion, and improve overall system efficiency.
From Osaka Gas USA’s perspective, the partnership represents an important step in expanding its footprint in the U.S. power market. “We are pleased to partner with CleanCapital on this acquisition as we continue to expand our presence in the U.S. power market,” said Shingo Morii, Senior Vice President at Osaka Gas USA. He highlighted the role of battery storage in strengthening grid reliability and resilience in New York City while supporting the integration of clean energy resources.
Morii added that Osaka Gas USA looks forward to working closely with CleanCapital and other project stakeholders to deliver long-term value through safe, reliable, and efficient operations. The collaboration combines CleanCapital’s local market expertise and operational capabilities with Osaka Gas’s global energy experience and financial strength.
Energy Storage as a Critical Grid Resource
Across the United States, communities and businesses are facing increasing energy costs, tightening supply conditions, and growing exposure to extreme weather events. These pressures are particularly pronounced in urban centers, where aging infrastructure and limited space for new generation make grid management more complex.
Energy storage has emerged as a critical tool for addressing these challenges. Battery systems can respond instantaneously to fluctuations in supply and demand, reduce strain on the grid during peak periods, and help stabilize energy prices. By storing electricity when supply is abundant and releasing it when demand is high, storage assets enhance efficiency and reliability across the system.
In New York City, where peak demand events can stress the grid and drive up costs, standalone battery projects like Arlington and Littlefield provide valuable flexibility. They support the integration of renewable energy, reduce reliance on peaking fossil fuel plants, and contribute to the state’s broader clean energy and decarbonization goals.
Building a More Resilient Energy Future
The CleanCapital–Osaka Gas USA joint venture reflects a growing recognition that strategic investments in energy storage are essential to building a more resilient and dependable energy future. As electricity demand continues to rise—driven by electrification, population growth, and economic activity—storage will play an increasingly central role in maintaining reliability and affordability.
By acquiring a majority interest in this operating battery portfolio, CleanCapital reinforces its position as a leading owner and operator of distributed clean energy assets. The partnership also demonstrates how collaboration between U.S. and international energy companies can accelerate the deployment of critical infrastructure that benefits customers, communities, and the broader grid.
With Arlington and Littlefield now part of its expanding portfolio, CleanCapital is well positioned to continue supporting grid modernization in New York City and beyond—delivering clean, flexible, and resilient energy solutions at a time when they are needed most.
Source Link: https://www.businesswire.com/
