The Marengo energy storage project, which will provide services to PJM Interconnection, will be operational by mid-2017.
PJM Interconnection operates one of the most mature markets for battery-based energy storage, for provision of frequency regulation, a grid ancillary service.
Switzerland-headquartered Leclanche is also the turnkey supplier of the battery system for the Marengo project, which is being developed by Glide Path Power, a Chicago-based developer of energy storage projects.
SGEM was formed in summer 2016 to invest in energy storage projects on a build-own-operate model.
The firm is able to tap into a pool of capital from private investors in Europe, to provide equity financing for energy storage projects, which tend to cost in the region of €5-50 million to construct.
SGEM's managing director, Jacques Boppe, said: "SGEM is a first mover in the energy storage asset class. Energy storage assets are attractive as different services can be bundled together to tap into multiple revenue streams."
SGEM is seeking to invest in projects that provide grid ancillary services, integration of renewables and microgrid projects.
"We are backed by seasoned private investors, seeking long-term yields. SGEM takes on the construction risk and we own and operate the plant for the long-term.
"In future, as the energy storage market develops, these assets will prove attractive to infrastructure investments, which typically invest in projects of €100 million and above.
"Our current pipeline includes ten utility-scale projects. We are now focused on five projects, which amount to about 80MW, in the US and western Europe. All are seeking equity to kick-off construction," Boppe added.