We hope you had a really good Easter (or, if appropriate, break) and are keeping safe and healthy
Letter of Intent from Mitsubishi Hitachi Power Systems (MHPS)
MHPS has been working closely with Storelectric for over a year to validate our three technologies (Green CAES ™, CCGT CAES and hybrid CAES – the hybrid version is a combination of the other two) using their current catalogue equipment and to develop a first plant. Please find attached a letter of intent to build such a project. This letter has the following features:
- Validation of all the technologies;
- They can build them all from their current catalogue of equipment;
- They can build them all hydrogen-ready – this would make CCGT and hybrid CAES emissions-free, and Green CAES ™ longer-duration;
- They will consider delivering an “EPC wrap” (total plant design, project management, construction and guarantees) up to and excluding the wellhead (our comment: the geotechnical engineers would do so for the wellhead and sub-surface aspects);
- They are considering investment.
Coronavirus Comment
In these challenging times, we’re continuing to do what we can to finance a first plant, assemble the collaborations to build it, and develop our project pipeline both nationally and internationally. Please continue to contact us as before, though (like most people) we have closed our office and cannot attend meetings, conferences or working groups.
Paul Davies moves on
Paul Davies, Storelectric’s Chairman for the past three years, has come to the end of his fixed term appointment and because of his increasing workload chairing the Carbon Capture and Storage Advisory Group and now as an adviser to BEIS on CCS, he is stepping down as Chairman of Storelectric.
At his last Board meeting in February Paul Davies commented,
“I joined Storelectric as a firm believer in the important role grid scale storage can play in decarbonising the economy and the advantages that the long duration and responsiveness of Storelectric’s CAES solution has to offer.
During that time the case if anything has become stronger. While some of the revenue sources have become more challenging through the onset of short term storage, the new drive to Net Zero by 2050 is likely to increase the reliance on renewables and in my view will make the need for CAES more compelling as an economic way of avoiding excessive renewable investment and to address grid intermittency.
During my time at the company, Storelectric has focused on developing its technical solutions, both substantially reducing its costs and improving efficiencies so that its plant is as profitable as possible without the need for subsidies and out-of-the-money power purchase agreements.
The time is now ripe for strategic investors to work with Storelectric to develop the first plants and demonstrate both CAES’s economics and the critical role grid scale storage can play in the system.
It is a shame that my increasing workload elsewhere means I cannot renew my chairmanship, but I of course will remain a great friend of the company and will always be on the lookout for strategic partners and opportunities for CAES to contribute meaningfully to the energy mix.”
Paul will continue to support as an Advisor to the Board and we wish him well and can count on a friend involved with BEIS’ work in the five main energy clusters, in three of which (Teesside, Humberside and the North West) there are salt basins which we can use.
Discussions with SSE
We have started initial discussions with SSE for a possible repurposing of one of their salt caverns in the North East (Humberside) to CAES operation. Initial results look positive and further work will commence once the current lockdown is passed.
Article in Engerati Magazine
Engerati, a leading forum for discussing the energy industry, picked up on a recent analysis Mark did on the synergies between renewable generation and Storelectric’s CAES, making both more profitable and enabling projects that grids could not otherwise accommodate. The article is Developing projects on weak and saturated grids.
Thought Leadership Blog
Alternatives to CAES
This month, our CTO Mark Howitt considers the alternative to Compressed Air Energy Storage. These include batteries, demand side response, pumped hydro, CCUS power stations and do-nothing / ignorance. Each is being pursued somewhere and each has its benefits and merits, but can they rise to the challenge of decarbonisation without CAES?
