Establishment of 'M&K Energy LLC' to Promote Grid-scale Battery Business

Kygnus Sekiyu K.K. (Headquarters: Chiyoda-ku, Tokyo; President: Masahiro Wakazawa | hereinafter Kygnus) and Matsuo Sangyo Co., Ltd. (Headquarters: Osaka City, Osaka Prefecture; President: Naoki Matsuo | hereinafter Matsuo Sangyo) have agreed to establish "M&K Energy LLC," a joint venture to jointly operate a grid-scale battery energy storage system, and held a signing ceremony on April 9, 2026. Through this initiative, both companies aim to contribute to the stabilization of the power grid—which is becoming increasingly important with the expanding introduction of renewable energy—and to create a new energy business based on battery energy storage. Background In recent years, due to the occurrence of grid congestion and output curtailment accompanying the expanded introduction of renewable energy, expectations have been growing year by year for grid-scale batteries, which adjust power supply and demand and contribute to the stable supply of electricity. Furthermore, in Japan, the development of capacity markets and supply-demand adjustment markets is progressing, expanding opportunities for power businesses utilizing battery energy storage. Given this background, the joint venture will accumulate expertise through actual operations in the supply-demand adjustment market and proceed to establish a revenue model for future business expansion. Kygnus has been considering this project because 1) grid-scale battery stations align with its management philosophy of "contributing to local communities through the stable supply of energy" and contribute to the realization of a sustainable society, and 2) it holds promise for geographically distributed business deployment and the utilization of idle land. Starting with this initiative, Kygnus will cross its business foundation and customer network with Matsuo Sangyo's technical expertise to promote collaboration with a view toward future expansion. ■ Overview of the Grid-scale Battery Station Location: Oura-gun, Gunma Prefecture Start of Commercial Operation: May 2026 Adopted Battery: Gotion Power Output: Approx. 2MW Battery Capacity: Approx. 8MWh Under the management philosophy of "contributing to local communities through the stable supply of energy," Kygnus will actively promote businesses that contribute to the global environment and local communities through next-generation energy supply. Kygnus Sekiyu K.K. Corporate Planning Department Contact: Takahashi tatsuya.takahashi@kygnus.co.jp Kygnus Sekiyu K.K. General Affairs Department Contact: Matsuzono https://corp.kygnus.jp/contact Company Name: Kygnus Sekiyu K.K. Headquarters Location: 10th Floor, Otemachi Place East Tower, 2-3-2 Otemachi, Chiyoda-ku, Tokyo President and CEO: Masahiro Wakazawa Business Description: Sale of various petroleum products Established: February 1, 1972 Website: https://corp.kygnus.jp/